Vol. 86 Friday, No. 13 January 22, 2021

Pages 6553–6824

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 86, No. 13

Friday, January 22, 2021

Administrative Conference of the Copyright Royalty Board NOTICES RULES Adoption of Recommendations, 6612–6626 Determination and Allocation of Initial Administrative Assessment To Fund Mechanical Licensing Collective, Agricultural Marketing Service 6568–6571 NOTICES Opportunity for Designation: Defense Department Urbana, IL; Sandusky, MI; Davenport, IA; Enid, OK; NOTICES Keokuk, IA; Marshall, MT; Council Bluffs, IA; Agency Information Collection Activities; Proposals, Fremont, NE; Annapolis, MD; Amarillo, TX; Cairo, Submissions, and Approvals: IL; Baton Rouge, LA; Raleigh, NC; Belmond, IA; and Affidavit of Individual Surety, 6650–6651 Ogden, Utah Areas, Education Department Agriculture Department NOTICES See Agricultural Marketing Service Agency Information Collection Activities; Proposals, See Animal and Plant Health Inspection Service Submissions, and Approvals: See Forest Service Office of Special Education and Rehabilitative Services See Rural Business-Cooperative Service Peer Reviewer Data Form, 6637–6638 Applications for Proprietary Institutions Under the Higher Animal and Plant Health Inspection Service Education Emergency Relief Fund: NOTICES Coronavirus Response and Relief Supplemental Classify as Level I for Bovine Tuberculosis and Appropriations Act, 2021; Correction, 6638–6639 Brucellosis, Request for Comments: Classify the State of Sonora, , as Level I for Accrediting Agencies Currently Undergoing Review for Brucellosis, the Purposes of Recognition, 6638

Bureau of Safety and Environmental Enforcement Employment and Training Administration NOTICES PROPOSED RULES Risk Management, Financial Assurance and Loss Agency Information Collection Activities; Proposals, Prevention; Submissions, and Approvals, 6672–6673 Withdrawal, Energy Department See Federal Energy Regulatory Commission Centers for Medicare & Medicaid Services NOTICES Environmental Protection Agency Agency Information Collection Activities; Proposals, PROPOSED RULES Submissions, and Approvals, Air Quality State Implementation Plans; Approvals and Promulgations: Civil Rights Commission Kentucky; Gasoline Loading Facilities at Existing Bulk NOTICES Terminals and New Bulk Plants, 6589–6591 Meetings: Maine; Infrastructure State Implementation Plan Illinois Advisory Committee, 6629–6630 Requirements for the 2015 Ozone Standard and Virginia Advisory Committee, 6628–6629 Negative Declaration for the Oil and Gas Industry for Washington Advisory Committee, 6629 the 2008 and 2015 Ozone Standards, 6591–6602 Reasons for Agency Response: Coast Guard Toxic Substances Control Act, 6602–6611 RULES NOTICES Safety Zone: Environmental Impact Statements; Availability, etc.: Lower Mississippi River, Mile Marker 368 and 370, Weekly Receipt, 6643–6644 Natchez, MS, 6566–6568 Federal Aviation Administration Commerce Department RULES See International Trade Administration Airworthiness Directives: See National Oceanic and Atmospheric Administration M7 Aerospace LLC Airplanes, 6559–6561 See Patent and Trademark Office NOTICES Federal Communications Commission Fiscal Year 2018 Service Contract Inventory Data, 6630 PROPOSED RULES Petitions for Reconsideration of Action in Rulemaking Comptroller of the Currency Proceeding, 6611 PROPOSED RULES NOTICES Exemptions to Suspicious Activity Report Requirements, Agency Information Collection Activities; Proposals, 6572–6576 Submissions, and Approvals, 6645–6646

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Office of Engineering and Technology Seeks Additional Health and Human Services Department Information Regarding Client-to-Client Device See Centers for Medicare & Medicaid Services Communications in the 6 GHz Band, 6644–6645 See Health Resources and Services Administration See National Institutes of Health Federal Deposit Insurance Corporation NOTICES RULES Agency Information Collection Activities; Proposals, Unsafe and Unsound Banking Practices: Submissions, and Approvals, 6657–6658 Brokered Deposits and Interest Rate Restrictions, 6742– Appointment of Administrative Dispute Resolution Panel 6792 Members, PROPOSED RULES Meetings: Exemptions to Suspicious Activity Report Requirements, Health Information Technology Advisory Committee; 6580–6586 2021 Schedule, 6656–6657 NOTICES Meetings; Sunshine Act, 6646 Health Resources and Services Administration NOTICES Federal Election Commission National Vaccine Injury Compensation Program: NOTICES List of Petitions Received, 6651–6656 Filing Dates: Louisiana Special Election in the 2nd Congressional Homeland Security Department District Special Election, 6646–6648 See Coast Guard Louisiana Special Election in the 5th Congressional See U.S. Customs and Border Protection District Special Election, 6648–6650 Meetings; Sunshine Act, 6648 Interior Department See Bureau of Safety and Environmental Enforcement Federal Energy Regulatory Commission See National Park Service NOTICES See Ocean Energy Management Bureau Combined Filings, 6639, 6641–6642 Complaint: Internal Revenue Service DTE Electric Co. v. Midcontinent Independent System Operator, Inc., International Transmission Co., LLC, NOTICES Agency Information Collection Activities; Proposals, 6640 Submissions, and Approvals, 6738–6739 Effectiveness of Exempt Wholesale Generator and Foreign Meetings: Utility Company Status: Taxpayer Advocacy Panel Taxpayer Assistance Center HDSI, LLC; Wapello Solar, LLC; Upton County 2 Solar; et Improvements Project Committee, 6739 al., 6643 Taxpayer Advocacy Panel Taxpayer Communications Environmental Assessments; Availability, etc.: Project Committee, 6739 Blackstone Hydro Associates, 6640 Taxpayer Advocacy Panel’s Notices and Correspondence Request Under Blanket Authorization and Establishing Project Committee, 6739–6740 Intervention and Protest Deadline: Taxpayer Advocacy Panel’s Special Projects Committee, Columbia Gas Transmission, LLC., 6642–6643 6740 Federal Housing Finance Agency Taxpayer Advocacy Panel’s Tax Forms and Publications NOTICES Project Committee, 6740 Annual Adjustment of the Cap on Average Total Assets Taxpayer Advocacy Panel’s Toll–Free Phone Lines That Defines Community Financial Institutions, 6650 Project Committee, 6739

Federal Reserve System International Trade Administration PROPOSED RULES NOTICES Membership of State Banking Institutions in the Federal Antidumping or Countervailing Duty Investigations, Orders, Reserve System: or Reviews: Reports of Suspicious Activities Under Bank Secrecy Act, Aluminum Extrusions From the People’s Republic of 6576–6580 , 6630–6634

Federal Retirement Thrift Investment Board International Trade Commission NOTICES NOTICES Meetings: Antidumping or Countervailing Duty Investigations, Orders, Board Meeting, 6650 or Reviews: Difluoromethane (R–32) From China; Cancellation of Forest Service Hearing, 6670–6671 NOTICES Media Outlets for Publication of Legal and Action Notices; Judicial Conference of the United States Southern Region, 6626–6628 NOTICES Meetings: General Services Administration Advisory Committee on Appellate Rules, 6671 NOTICES Advisory Committee on Bankruptcy Rules, 6671 Agency Information Collection Activities; Proposals, Advisory Committee on Civil Rules, 6671 Submissions, and Approvals: Advisory Committee on Criminal Rules, 6671 Affidavit of Individual Surety, 6650–6651 Advisory Committee on Evidence Rules, 6672

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Labor Department Museum of Riverside, Riverside, CA, 6665–6666 See Employment and Training Administration Inventory Completion: Mississippi Department of Archives and History, Jackson, Library of Congress MS; Correction, 6667–6668 See Copyright Royalty Board U.S. Department of the Interior, National Park Service, Pu’ukohola Heiau National Historic Site, Kamuela, Management and Budget Office HI, 6669–6670 NOTICES National Register of Historic Places: Proposed Designation: Pending Nominations and Related Actions, 6666–6667 Databases for Treasury’s Working System Under the Do Not Pay Initiative, 6673 Nuclear Regulatory Commission Rescission Proposals Pursuant to the Congressional Budget NOTICES and Impoundment Control Act, 6673–6682 Draft NUREG: Consolidated Decommissioning Guidance, Maritime Administration Characterization, Survey, and Determination of NOTICES Radiological Criteria, 6683–6684 Small Shipyard Grant Program; Application Deadlines, Knowledge and Abilities Catalog for Nuclear Power Plant 6733–6737 Operators: National Aeronautics and Space Administration Westinghouse AP1000 Pressurized Water Reactors, 6682– NOTICES 6683 Agency Information Collection Activities; Proposals, License Renewal Application: Submissions, and Approvals: NextEra Energy Point Beach, LLC Point Beach Nuclear Affidavit of Individual Surety, 6650–6651 Plant, Units 1 and 2, 6684–6686 National Credit Union Administration Ocean Energy Management Bureau PROPOSED RULES PROPOSED RULES Bank Secrecy Act, 6586–6589 Risk Management, Financial Assurance and Loss Prevention; National Institutes of Health Withdrawal, NOTICES Meetings: Patent and Trademark Office Center for Scientific Review, 6659–6663 NOTICES Eunice Kennedy Shriver National Institute of Child Request for Information: Health and Human Development, 6658 Sovereign Immunity Study, 6636–6637 National Cancer Institute, 6662 National Institute of Biomedical Imaging and Pipeline and Hazardous Materials Safety Administration Bioengineering, 6661 NOTICES National Institute of Dental and Craniofacial Research, Pipeline Safety: 6658–6659 Request for Special Permit; Southern Natural Gas Co., National Institute of Mental Health, 6661–6662 LLC, 6737–6738 National Oceanic and Atmospheric Administration Postal Regulatory Commission RULES NOTICES Fisheries of the Exclusive Economic Zone Off : Income Tax Review, 6687 Pacific Cod by Pot Catcher/Processors in the Bering Sea and Aleutian Islands Management Area; Closure, Presidential Documents 6571 PROCLAMATIONS NOTICES Aliens Who Have Been Physically Present in the Schengen Agency Information Collection Activities; Proposals, Area, the , the Republic of Ireland, and Submissions, and Approvals: the Federative Republic of ; Termination of Fishery Capacity Reduction Program Buyback Requests, Suspension of Entry Into U.S. (Proc. 10138), 6799–6801 6634–6635 Special Observances: West Coast Region Vessel Identification Requirements, Martin Luther King, Jr., Federal Holiday (Proc. 10135), 6635–6636 6555–6556 Meetings: National Sanctity of Human Life Day (Proc. 10136), Fisheries of the South Atlantic; Southeast Data, 6793–6796 Assessment, and Review, 6634 National School Choice Week (Proc. 10137), 6797–6798 Religious Freedom Day (Proc. 10134), 6553–6554 National Park Service EXECUTIVE ORDERS RULES Agency Rulemaking; Efforts To Ensure Democratic Commercial Visitor Services: Accountability (EO 13979), 6813–6815 Concession Contracts, Federal Buildings and Facilities: PROPOSED RULES Building the National Garden of American Heroes (EO Visitor Experience Improvements Authority Contracts, 13978), 6807–6812 NOTICES Law Enforcement Officers, Judges, Prosecutors, and Their Intent To Repatriate Cultural Items: Families; Protection Efforts (EO 13977), 6803–6806 Los Angeles County Museum of Art, Los Angeles, CA, Regulatory Reform; Efforts To Protect Americans From 6668–6669 Overcriminalization (EO 13980), 6817–6820

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Unmanned Aircraft Systems; Efforts To Protect U.S. (EO Transportation Department 13981), 6821–6823 See Federal Aviation Administration ADMINISTRATIVE ORDERS See Maritime Administration Southern Border, U.S.; Continuation of National Emergency See Pipeline and Hazardous Materials Safety (Notice of January 15, 2021), 6557 Administration

Rural Business-Cooperative Service Treasury Department NOTICES See Comptroller of the Currency Request for Applications: See Internal Revenue Service Rural Business Development Grant Programs; Fiscal Year RULES 2021, Imposition of Import Restrictions on Categories of Archaeological and Ethnological Material from Securities and Exchange Commission , 6561–6566 NOTICES Meetings; Sunshine Act, 6687 U.S. Customs and Border Protection Order Granting Approval of Amendments: RULES Public Company Accounting Oversight Board Interim Imposition of Import Restrictions on Categories of Independence Standards, 6708–6710 Archaeological and Ethnological Material from Order Making Fiscal Year 2021 Annual Adjustments to Morocco, 6561–6566 Transaction Fee Rates, 6694–6700 NOTICES Self-Regulatory Organizations; Proposed Rule Changes: Western Hemisphere Travel Initiative: Cboe BZX Exchange, Inc., 6710–6715 Designation of an Approved Native American Tribal Card Cboe EDGX Exchange, Inc., 6719–6724 Issued by the Muscogee (Creek) Nation as an Cboe Exchange, Inc., 6705–6708, 6710, 6718–6719 Acceptable Document To Denote Identity and Fixed Income Clearing Corp., 6724–6729 Citizenship for Entry in the United States at Land ICE Clear Credit LLC, 6715–6718 and Sea Ports of Entry, 6664–6665 Investors Exchange, LLC, 6687–6694 Nasdaq BX, Inc., 6700–6705 United States Agency for Global Media NYSE Arca, Inc., 6719 NOTICES Performance Review Board Members, 6651 State Department NOTICES Imposition of Nonproliferation Measures Against Foreign Separate Parts In This Issue Persons, Including a Ban on United States Government Procurement, 6730–6731 Part II Republic of Designation as a State Sponsor of Federal Deposit Insurance Corporation, 6742–6792 Terrorism, 6731 Sanctions Actions on Hong Kong Normalization, 6729–6730 Part III Presidential Documents, 6793–6801, 6803–6806 Surface Transportation Board NOTICES Part IV Lease and Operation Exemption Including Interchange Presidential Documents, 6807–6815, 6817–6823 Commitment: San Joaquin Valley Railroad Co.; Union Pacific Railroad Co., 6731–6732 Reader Aids Temporary Trackage Rights Exemption: Consult the Reader Aids section at the end of this issue for Union Pacific Railroad Co.; BNSF Railway Co., 6731 phone numbers, online resources, finding aids, and notice of recently enacted public laws. Trade Representative, Office of United States To subscribe to the Federal Register Table of Contents NOTICES electronic mailing list, go to https://public.govdelivery.com/ Determination Pursuant to Section 301: accounts/USGPOOFR/subscriber/new, enter your e-mail ’s Acts, Policies, and Practices Related to address, then follow the instructions to join, leave, or Currency Valuation, 6732–6733 manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

3 CFR Proclamations: 9993 (Terminated by Proc. 10138) ...... 6799 9996 (Terminated by Proc. 10138) ...... 6799 10041 (Terminated by Proc. 10138) ...... 6799 10134...... 6553 10135...... 6555 10136...... 6795 10137...... 6797 10138...... 6799 Executive Orders: 13934 (amended by 13978) ...... 6809 13977...... 6803 13978...... 6809 13979...... 6813 13980...... 6817 13981...... 6821 Administrative Orders: Notices: Notice of January 15, 2021 ...... 6557 12 CFR 303...... 6742 337...... 6742 Proposed Rules: 21...... 6572 163...... 6572 208...... 6576 353...... 6580 748...... 6586 14 CFR 39...... 6559 19 CFR 12 (2 documents) ...... 6561 33 CFR 165...... 6566 37 CFR 390...... 6568 40 CFR Proposed Rules: Ch. I ...... 6602 52 (2 documents) ....6589, 6591 47 CFR Proposed Rules: 1...... 6611 54...... 6611 50 CFR 679...... 6571

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Federal Register Presidential Documents Vol. 86, No. 13

Thursday, January 22, 2021

Title 3— Proclamation 10134 of January 15, 2021

The President Religious Freedom Day, 2021

By the President of the United States of America

A Proclamation Faith inspires hope. Deeply embedded in the heart and soul of our Nation, this transcendent truth has compelled men and women of uncompromising conscience to give glory to God by worshiping both openly and privately, lifting up themselves and others in prayer. On Religious Freedom Day, we pledge to always protect and cherish this fundamental human right. When the Pilgrims first crossed the Atlantic Ocean more than 400 years ago in pursuit of religious freedom, their dedication to this first freedom shaped the character and purpose of our Nation. Later, with the signing of the Declaration of Independence, the Constitution, and the Bill of Rights, their deep desire to practice their religion unfettered from government intru- sion was realized. Since then, the United States has set an example for the world in permitting believers to live out their faith in freedom. Over the past 4 years, my Administration has worked tirelessly to honor the vision of our Founders and defend our proud history of religious liberty. From day one, we have taken action to restore the foundational link between faith and freedom and promote a culture of religious liberty. My Administra- tion has protected the rights of individual religious believers, communities of faith, and faith-based organizations. We have defended religious liberty domestically and around the world. For example, I signed an Executive Order Promoting Free Speech and Religious Liberty to ensure that faith- based organizations would not be forced to compromise their religious beliefs as they serve their communities. This includes defending the rights of reli- gious orders to care for the infirm and elderly without being fined out of existence for refusing to facilitate access to services that violate their faith. We have also protected healthcare providers’ rights not to be forced to perform procedures that violate their most deeply-held convictions. Addition- ally, we have ended the misguided policies of denying access to educational funding to historically black colleges and universities because of their reli- gious character and of denying loan forgiveness to those who perform public services at religious organizations. Throughout this difficult year, we have continued these efforts, cutting red tape to ensure houses of worship and other faith-based organizations could receive Paycheck Protection Program loans on the same grounds and with the same parameters as any other entity. We have also aggressively defended faith communities against over- reach by State and local governments that have tried to shut down communal worship. Together, we have honored the sanctity of every life, protected the rights of Americans to follow their conscience, and preserved the histor- ical tradition of religious freedom in our country. While Americans enjoy the blessings of religious liberty, we must never forget others around the world who are denied this unalienable right. Sadly, millions of people across the globe are persecuted and discriminated against for their faith. My Administration has held foreign governments accountable for trampling—in many cases, egregiously so—on religious liberty. In 2019, to shed light on this important issue, I welcomed survivors of religious persecution from 16 countries in the Oval Office, including Christians, Jews,

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and Muslims, and made history by standing before the United Nations General Assembly and calling on all nations of the world to stop persecuting people of faith. The United States will never waver in these efforts to expand religious liberty around the world and calls on all nations to respect the rights of its citizens to live according to their beliefs and conscience. On Religious Freedom Day, we honor the vision of our Founding Fathers for a Nation made strong and righteous by a people free to exercise their faith and follow their conscience. As Americans united in unparalleled freedom, we recommit to safeguarding and preserving religious freedom across our land and around the world. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 16, 2021, as Religious Freedom Day. I call on all Americans to commemorate this day with events and activities that remind us of our shared heritage of religious liberty and that teach us how to secure this blessing both at home and around the world. IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of January, in the year of our Lord two thousand twenty-one, and of the Independence of the United States of America the two hundred and forty- fifth.

[FR Doc. 2021–01564 Filed 1–21–21; 8:45 am] Billing code 3295–F1–P

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Proclamation 10135 of January 15, 2021

Martin Luther King, Jr., Federal Holiday, 2021

By the President of the United States of America

A Proclamation On August 28, 1963, just a century after the Emancipation Proclamation, the Reverend Dr. Martin Luther King, Jr. led more than 200,000 Americans in a March on Washington in pursuit of jobs and freedom for all people. Standing on the steps of the Lincoln Memorial, he called on Americans ‘‘to sit down together at the table of brotherhood’’ and meet our promise of life, liberty, and the pursuit of happiness for all. On that historic day, and throughout his life, Dr. King exemplified the quintessential American belief that we will leave a brighter, more prosperous future for our children. Today, we honor and celebrate Dr. King, a giant of the civil rights movement whose nonviolent resistance to the injustices of his era—racial segregation, employment discrimination, and the denial of the right to vote—enlightened our Nation and the world. In the face of tumult and upheaval, Dr. King reminded us to always meet anger with compassion in order to truly ‘‘heal the hurts, right the wrongs and change society.’’ It is with this same spirit of forgiveness that we come together to bind the wounds of past injustice by lifting up one another regardless of race, gender, creed, or religion, and rising to the first principles enshrined in our founding documents. Indeed, Dr. King described our Con- stitution and Declaration of Independence as promissory notes left by our Founding Fathers for ‘‘every American to fall heir.’’ His dream, rooted in the American Dream, was that our children might be ‘‘judged not by the color of their skin, but by the content of their character.’’ This dream, he hoped, would finally let freedom ring for all people. As Dr. King stated in 1961, at the heart of his dream is ‘‘equality of oppor- tunity.’’ For Dr. King, the march toward civil rights is intertwined with economic empowerment. My Administration has fully embraced this spirit, taking historic action to create jobs and uplift every community across our country and reaching the lowest unemployment rate for Black Americans ever recorded. Through the Tax Cuts and Jobs Act of 2017, we created nearly 9,000 Opportunity Zones that have produced more than $75 billion in new investment in distressed neighborhoods. My Administration has supported our Nation’s incredible Historically Black Colleges and Universities (HBCUs) in several ways, including by establishing the President’s Board of Advisors on HBCUs, reauthorizing more than $85 million in funding for them through the FUTURE Act, and allocating $930 million in higher education emergency relief through the CARES Act. As President, I have fully committed to the educational and economic empowerment of minority communities and young people across our Nation—and the progress we have made must continue into the future. It is clear now more than ever before that we can no longer allow the American Dream to be deferred for Black Americans. However, in this march toward equality, we cannot permit any ‘‘creative protest to degenerate into physical violence.’’ As a student of nonviolence, Dr. King called on us not to ‘‘satisfy the thirst for freedom by drinking from the cup of bitterness and hatred.’’ In the national effort to achieve freedom and equality, and in this shared love of country, we must endeavor with all our might to

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meet the promissory notes endowed to us by our Founding Fathers, as Dr. King fervently wished. With the same dream, faith, and hope championed by the Reverend Dr. Martin Luther King, Jr., we recommit to upholding his legacy and meeting our sacred obligation to protect the unalienable rights of all Americans. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 18, 2021, as the Martin Luther King, Jr., Federal Holiday. On this day, I encourage all Americans to recommit themselves to Dr. King’s dream by engaging in acts of service to others, to their community, and to our Nation. IN WITNESS WHEREOF, I have hereunto set my hand this fifteenth day of January, in the year of our Lord two thousand twenty-one, and of the Independence of the United States of America the two hundred and forty- fifth.

[FR Doc. 2021–01565 Filed 1–21–21; 8:45 am] Billing code 3295–F1–P

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Notice of January 15, 2021

Continuation of the National Emergency With Respect to the Southern Border of the United States

On February 15, 2019, by Proclamation 9844, I declared a national emergency concerning the southern border of the United States to deal with the border security and humanitarian crisis that threatens core national security inter- ests. The ongoing border security and humanitarian crisis at the southern border of the United States continues to threaten our national security, including by exacerbating the effect of the pandemic caused by COVID–19. The execu- tive branch has taken steps to address the crisis, but further action is needed to address the humanitarian crisis and to control unlawful migration and the flow of narcotics and criminals across the southern border of the United States. For these reasons, the national emergency declared on February 15, 2019, and the measures adopted on that date to respond to that emergency, must continue in effect beyond February 15, 2021. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Proclamation 9844 concerning the southern border of the United States. This notice shall be published in the Federal Register and transmitted to the Congress.

THE WHITE HOUSE, January 15, 2021. [FR Doc. 2021–01566 Filed 1–21–21; 8:45 am] Billing code 3295–F1–P

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Rules and Regulations Federal Register Vol. 86, No. 13

Friday, January 22, 2021

This section of the FEDERAL REGISTER aerospace.honeywell.com/en/services/ engine power settings with consequent contains regulatory documents having general maintenance-and-monitoring. You may loss of control. applicability and legal effect, most of which view this service information at the Discussion of Final Airworthiness are keyed to and codified in the Code of FAA, Airworthiness Products Section, Directive Federal Regulations, which is published under Operational Safety Branch, 901 Locust, 50 titles pursuant to 44 U.S.C. 1510. Kansas City, Missouri 64106. For Comments The Code of Federal Regulations is sold by information on the availability of this The FAA received no comments on the Superintendent of Documents. material at the FAA, call 816–329–4148. the NPRM or on the determination of It is also available at https:// the costs. www.regulations.gov by searching for DEPARTMENT OF TRANSPORTATION and locating Docket No. FAA–2020– Conclusion 0910. Federal Aviation Administration The FAA reviewed the relevant data Examining the AD Docket and determined that air safety requires adopting this AD as proposed. 14 CFR Part 39 You may examine the AD docket at Accordingly, the FAA is issuing this AD https://www.regulations.gov by [Docket No. FAA–2020–0910; Project to address the unsafe condition on these searching for and locating Docket No. Identifier 2018–CE–044–AD; Amendment products. This AD is adopted as 39–21378; AD 2021–01–02] FAA–2020–0910; or in person at Docket proposed in the NPRM. RIN 2120–AA64 Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal Related Service Information Under 1 Airworthiness Directives; M7 holidays. The AD docket contains this CFR Part 51 final rule, any comments received, and Aerospace LLC Airplanes The FAA reviewed Honeywell other information. The address for International Inc. Service Bulletin AGENCY: Federal Aviation Docket Operations is U.S. Department of TPE331–72–2190, dated December 21, Administration (FAA), DOT. Transportation, Docket Operations, M– 2011, which contains procedures for ACTION: 30, West Building Ground Floor, Room Final rule. replacing or reworking the propeller W12–140, 1200 New Avenue SE, pitch control assembly, incorporating a SUMMARY: The FAA is adopting a new Washington, DC 20590. threaded hole in the splined end of the airworthiness directive (AD) for M7 FOR FURTHER INFORMATION CONTACT: Aerospace LLC Models SA26–AT and shouldered shaft, and reassembling the Jonas Perez, Aerospace Engineer, Fort propeller pitch control assembly. SA26–T airplanes. This AD was Worth ACO Branch, FAA, 10101 prompted by reports of the airplane Honeywell International Inc. Service Hillwood Parkway, Fort Worth, Texas Bulletin TPE331–72–2190, dated power lever linkage detaching from the 76177–1524; phone: 817–222–5145; fax: TPE331 engine propeller pitch control December 21, 2011, was previously 817–222–5960; email: jonas.perez@ approved for IBR on May 5, 2017 (82 FR (PPC) shaft. This AD requires faa.gov. repetitively inspecting the PPC for 15982, March 31, 2017). This service proper torque and making any necessary SUPPLEMENTARY INFORMATION: information is reasonably available because the interested parties have corrections until the replacement of the Background PPC assembly and the installation of a access to it through their normal course secondary retention feature (safety wire) The FAA issued a notice of proposed of business or by the means identified are done. The FAA is issuing this AD to rulemaking (NPRM) to amend 14 CFR in ADDRESSES. part 39 by adding an AD that would address the unsafe condition on these Other Related Service Information products. apply to M7 Aerospace LLC Models SA26–AT and SA26–T airplanes. The The FAA also reviewed paragraph j. DATES: This AD is effective February 26, NPRM published in the Federal of M7 Aerospace SA26 Series 2021. Register on October 14, 2020 (85 FR Maintenance Manual Temporary The Director of the Federal Register 64993). The NPRM was prompted by Revision 4–02, dated July 22, 2020, approved the incorporation by reference reports of the airplane power lever which contains information related to (IBR) of a certain publication listed in linkage detaching from the TPE331 the installation of the secondary this AD as of May 5, 2017 (82 FR 15982, engine PPC shaft. In the NPRM, the FAA retention feature (safety wire) on the March 31, 2017). proposed to require repetitively airplane PPC lever and the PPC ADDRESSES: For service information inspecting the PPC for proper torque assembly. identified in this final rule, contact and making any necessary corrections Honeywell International Inc., 111 S 34th until the replacement of the PPC Costs of Compliance Street, Phoenix, Arizona 85034–2802; assembly and the installation of a The FAA estimates that this AD phone: 855–808–6500; email: secondary retention feature (safety wire) affects 55 airplanes of U.S. registry. The [email protected]; are done. The FAA is issuing this AD to FAA estimates the following costs to internet: https:// prevent uncommanded change to the comply with this AD:

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ESTIMATED COSTS

Cost per Action Labor cost Parts cost product Cost on U.S. operators

Install secondary retention feature 1 work-hour × $85 per hour = $85 $10 $95 $5,225. (safety wire). Inspect PPC lever ...... 1 work-hour × $85 per hour = $85 0 85 $4,675 per inspection cycle. per inspection cycle. Repair, replace, and/or rework 19 work-hours × $85 per hour = 1,000 2,615 $143,825. PPC lever input shaft. $1,615.

The FAA estimates the following be required based on the results of the determining the number of aircraft that costs to do any adjustment that would inspection. The FAA has no way of might need the adjustment:

ON-CONDITION COSTS

Cost per Action Labor cost Parts cost product

Correct attachment of the PPC lever ...... 1 work-hour × $85 per hour = $85 ...... $0 $85

Authority for This Rulemaking List of Subjects in 14 CFR Part 39 address detachment of the power lever linkage to the TPE331 engine PPC shaft, Title 49 of the United States Code Air transportation, Aircraft, Aviation which could result in uncommanded change specifies the FAA’s authority to issue safety, Incorporation by reference, to the engine power settings with consequent rules on aviation safety. Subtitle I, Safety. loss of control. section 106, describes the authority of the FAA Administrator. Subtitle VII: The Amendment (f) Compliance Aviation Programs, describes in more Accordingly, under the authority Comply with this AD within the detail the scope of the Agency’s delegated to me by the Administrator, compliance times specified, unless already authority. the FAA amends 14 CFR part 39 as done. The FAA is issuing this rulemaking follows: (g) PPC Lever Inspection under the authority described in (1) Within 100 hours time-in-service (TIS) Subtitle VII, Part A, Subpart III, Section PART 39—AIRWORTHINESS after the effective date of this AD and 44701: General requirements. Under DIRECTIVES thereafter at intervals not to exceed 100 hours that section, Congress charges the FAA TIS, inspect the security of the PPC lever by ■ with promoting safe flight of civil 1. The authority citation for part 39 pulling the PPC lever upward by hand to aircraft in air commerce by prescribing continues to read as follows: ensure it does not detach from the PPC input regulations for practices, methods, and Authority: 49 U.S.C. 106(g), 40113, 44701. shaft. If the PPC lever detaches during any procedures the Administrator finds inspection, before further flight, comply with § 39.13 [Amended] paragraphs (h) and (i) of this AD. necessary for safety in air commerce. (2) The replacement/re-identification This regulation is within the scope of ■ 2. The FAA amends § 39.13 by adding required by paragraph (h) of this AD and the that authority because it addresses an the following new airworthiness installation of the secondary retention feature unsafe condition that is likely to exist or directive: (safety wire) required by paragraph (i) of this develop on products identified in this 2021–01–02 M7 Aerospace LLC: AD terminate the repetitive inspections of the PPC lever attachment required by paragraph rulemaking action. Amendment 39–21378; Docket No. (g)(1) of this AD. Regulatory Findings FAA–2020–0910; Project Identifier 2018–CE–044–AD. (h) Replace and Inspect the PPC Assembly This AD will not have federalism implications under Executive Order (a) Effective Date Within 600 hours TIS after the effective date of this AD or within 12 months after the This airworthiness directive (AD) is 13132. This AD will not have a effective date of this AD, whichever occurs effective February 26, 2021. substantial direct effect on the States, on first, unless required before further flight by the relationship between the national (b) Affected ADs paragraph (g)(1) of this AD, do the actions in government and the States, or on the None. either paragraph (h)(1) or (2) of this AD in distribution of power and accordance with the Accomplishment responsibilities among the various (c) Applicability Instructions in Honeywell International Inc. levels of government. This AD applies to M7 Aerospace LLC Service Bulletin TPE331–72–2190, dated For the reasons discussed above, I Model SA26–AT and SA26–T airplanes, all December 21, 2011, except you are not certify that this AD: serial numbers, certificated in any category. required to report information to the manufacturer. (1) Is not a ‘‘significant regulatory (d) Subject action’’ under Executive Order 12866, (1) Replace the PPC assembly with the (2) Will not affect intrastate aviation Air Transport Association (ATA) of applicable new design PPC assembly. America Code 61, Propellers/propulsors. (2) Inspect the splined end of the in Alaska, and shouldered shaft for the presence and (3) Will not have a significant (e) Unsafe Condition condition of a threaded hole and, before economic impact, positive or negative, This AD was prompted by reports of the further flight, repair or replace the cam on a substantial number of small entities airplane power lever linkage detaching from assembly or rework the PPC assembly, as under the criteria of the Regulatory the TPE331 engine propeller pitch control necessary, and re-identify the shouldered Flexibility Act. (PPC) shaft. The FAA is issuing this AD to shaft.

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(i) Secondary Retention Feature (Safety email: [email protected], or go to: Background Wire) https://www.archives.gov/federal-register/cfr/ ibr-locations.html. The Convention on Cultural Property Before further flight after completing the Implementation Act, Public Law 97– actions required by paragraph (h) of this AD, Issued on December 28, 2020. 446, 19 U.S.C. 2601 et seq. (hereinafter, install the secondary retention feature (safety Lance T. Gant, wire) on the airplane PPC lever and the PPC ‘‘the Cultural Property Implementation assembly. Director, Compliance & Airworthiness Act’’), implements the 1970 United Division, Aircraft Certification Service. Note 1 to paragraph (i): Paragraph j. of M7 Nations Educational, Scientific and Aerospace SA26 Series Maintenance Manual [FR Doc. 2021–01332 Filed 1–21–21; 8:45 am] Cultural Organization (UNESCO) Temporary Revision 4–02, dated July 22, BILLING CODE 4910–13–P Convention on the Means of Prohibiting 2020, contains information related to and Preventing the Illicit Import, Export installation of the secondary retention feature and Transfer of Ownership of Cultural (safety wire). DEPARTMENT OF HOMELAND Property (823 U.N.T.S. 231 (1972)) (j) Alternative Methods of Compliance SECURITY (hereinafter, ‘‘the Convention’’). (AMOCs) Pursuant to the Cultural Property U.S. Customs and Border Protection (1) The Manager, Safety Management Implementation Act, the Government of Section, Small Airplane Standards Branch, the United States entered into a bilateral FAA, has the authority to approve AMOCs DEPARTMENT OF THE TREASURY agreement with the Government of the for this AD, if requested using the procedures Kingdom of Morocco (Morocco) to found in 14 CFR 39.19. In accordance with 19 CFR Part 12 impose import restrictions on certain 14 CFR 39.19, send your request to your [CBP Dec. 21–02] archaeological and ethnological material principal inspector or local Flight Standards from Morocco on January 14, 2021. This District Office, as appropriate. If sending RIN 1515–AE60 rule announces the imposition of import information directly to the manager of the certification office, send it to the attention of restrictions on certain archaeological Imposition of Import Restrictions on and ethnological material from the person identified in paragraph (k)(1) of Categories of Archaeological and this AD. Morocco. Ethnological Material From Morocco (2) Before using any approved AMOC, Determinations notify your appropriate principal inspector, AGENCY: U.S. Customs and Border or lacking a principal inspector, the manager Under 19 U.S.C. 2602(a)(1), the Protection, Department of Homeland of the local flight standards district office/ United States must make certain Security; Department of the Treasury. certificate holding district office. determinations before entering into an ACTION: Final rule. (k) Related Information agreement to impose import restrictions For more information about this AD, SUMMARY: This final rule amends the under 19 U.S.C. 2602(a)(2). On April 30, contact Jonas Perez, Aerospace Engineer, Fort U.S. Customs and Border Protection 2020, the Assistant Secretary for Worth ACO Branch, FAA, 10101 Hillwood (CBP) regulations to reflect the Educational and Cultural Affairs, United Parkway, Fort Worth, Texas 76177–1524; imposition of import restrictions on States Department of State, after phone: 817–222–5145; fax: 817–222–5960; certain archaeological and ethnological consultation with and recommendation email: [email protected]. material from the Kingdom of Morocco by the Cultural Property Advisory (l) Material Incorporated by Reference (Morocco). These restrictions are being Committee, made the determinations (1) The Director of the Federal Register imposed pursuant to an agreement required under the statute with respect approved the incorporation by reference of between the Government of the United to certain archaeological and the service information listed in this States and the Government of Morocco ethnological material from Morocco that paragraph under 5 U.S.C. 552(a) and 1 CFR that has been entered into under the is described in the Designated List set part 51. authority of the Convention on Cultural forth below in this document. These (2) You must use this service information determinations include the following: as applicable to do the actions required by Property Implementation Act. The final rule amends the CBP regulations by (1) That Morocco’s cultural heritage is this AD, unless the AD specifies otherwise. in jeopardy from pillage of certain types (3) The following service information was adding Morocco to the list of countries approved for IBR on May 5, 2017 (82 FR which have a bilateral agreement with of archaeological material representing 15982, March 31, 2017). the United States that imposes cultural Morocco’s cultural heritage ranging in (i) Honeywell International Inc. Service property import restrictions. The final date from approximately 1 million B.C. Bulletin TPE331–72–2190, dated December rule also contains the Designated List to A.D. 1750 and certain types of 21, 2011. that describes the types of ethnological material representing (ii) [Reserved] Morocco’s cultural heritage from the (4) For Honeywell service information archaeological and ethnological material to which the restrictions apply. Saadian and Alaouite dynasties ranging identified in this AD, contact Honeywell in date from approximately A.D. 1549 to International Inc., 111 S 34th Street, Phoenix, DATES: Effective on January 15, 2021. 1912 (19 U.S.C. 2602(a)(1)(A)); (2) that Arizona 85034–2802; phone: 855–808–6500; FOR FURTHER INFORMATION CONTACT: For email: [email protected]; the Moroccan government has taken internet: https://aerospace.honeywell.com/ legal aspects, Lisa L. Burley, Chief, measures consistent with the en/services/maintenance-and-monitoring. Cargo Security, Carriers and Restricted Convention to protect its cultural (5) You may view this service information Merchandise Branch, Regulations and patrimony (19 U.S.C. 2602(a)(1)(B)); (3) at FAA, FAA, Airworthiness Products Rulings, Office of Trade, (202) 325– that import restrictions imposed by the Section, Operational Safety Branch, 901 0300, ot-otrrculturalproperty@ United States would be of substantial Locust, Kansas City, Missouri 64106. For cbp.dhs.gov. For operational aspects, benefit in deterring a serious situation of information on the availability of this Genevieve S. Dozier, Management and pillage and remedies less drastic are not material at the FAA, call 816–329–4148. Program Analyst, Commercial Targeting available (19 U.S.C. 2602(a)(1)(C)); and (6) You may view this service information and Analysis Center, Trade Policy and that is incorporated by reference at the (4) that the application of import National Archives and Records Programs, Office of Trade, (202) 945– restrictions as set forth in this final rule Administration (NARA). For information on 2942, [email protected]. is consistent with the general interests the availability of this material at NARA, SUPPLEMENTARY INFORMATION: of the international community in the

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interchange of cultural property among Designated List of Archaeological and (b) Neolithic period (c. 6500–300 B.C.): nations for scientific, cultural, and Ethnological Material of Morocco Kaf Taht El Ghar, Rouazi Skhirat, educational purposes (19 U.S.C. The Agreement between the United Tumulus of Mzoura 2602(a)(1)(D)). The Assistant Secretary States and Morocco includes the (c) Phoenician period (c. 600–300 B.C.): also found that the material described in categories of objects described in the Lixus, Mogador, Tangiers, Thamusida (d) Mauretanian period (c. 300–49 B.C.): the determinations meets the statutory Designated List set forth below. Lixus, Tangiers, Thamusida, definition of ‘‘archaeological or Importation of material on this list is Volubilis, Rirha ethnological material of the State Party’’ restricted unless the material is (e) Roman period (c. 40 B.C.–A.D. 600): (19 U.S.C. 2601(2)). accompanied by documentation Banasa, Cotta, Dchar Jdid, Kouass, certifying that the material left Morocco The Agreement Lixus, Mogador, Rirha, Sala, Tamuda, legally and not in violation of the export Thamusida, Volubilis On January 14, 2021, the Government laws of Morocco. (f) Islamic period (c. A.D. 600–present): 1 of the United States and the The Designated List includes certain Aghmat, Al-Mahdiya, Belyounech, Government of Morocco entered into a archaeological and ethnological material Chichaoua, Essaouira, Fez, Figuig, bilateral agreement, ‘‘Memorandum of from the Kingdom of Morocco. The Ighliz, Moulay Idris, Qsar es-Seghir, Understanding between the Government archaeological material in the Marrakesh, Meknes, Rabat, Sala, of the United States of America and the Designated List includes, but is not Sijilmasa, Tetouan, Tinmal, Volubilis limited to, objects made of stone, Government of the Kingdom of Morocco (Walila). Concerning the Imposition of Import ceramic, metal, bone, ivory, shell, glass, Restrictions on Categories of faience, semi-precious stone, painting, A. Stone Archaeological and Ethnological plaster, and textiles ranging in date from 1. Architectural Elements—This Material of Morocco’’ (hereinafter, ‘‘the approximately 1 million B.C. to A.D. category includes doors, door frames, Agreement’’), pursuant to the provisions 1750. The ethnological material window fittings, columns, capitals, of 19 U.S.C. 2602(a)(2). The Agreement included in the Designated List contains bases, lintels, jambs, archways, friezes, entered into force upon signature, and architectural elements, manuscripts, pilasters, engaged columns, altars, enables the promulgation of import and ceremonial and ritual objects of the prayer niches (mihrabs), screens, restrictions on certain categories of Islamic culture from the Saadian and fountains, inlays, and blocks from walls, archaeological material ranging in date Alaouite dynasties ranging in date from floors, and ceilings of buildings. from approximately 1 million B.C. to approximately A.D. 1549 to 1912. This Architectural elements may be plain, A.D. 1750, as well as certain categories would exclude Jewish ceremonial or molded, or carved and are often of ethnological material from the ritual objects. decorated with motifs and inscriptions. Saadian and Alaouite dynasties ranging Categories of Material Marble, limestone, sandstone, and in date from approximately A.D. 1549 to gypsum are most commonly used, in I. Archaeological 1912. A list of the categories of addition to porphyry and granite. A. Stone archaeological and ethnological material 2. Mosaics—Floor mosaics are made B. Ceramic subject to the import restrictions is set from stone cut into small bits (tesserae) C. Metal forth later in this document. and laid into a plaster matrix. Wall and D. Bone, Ivory, Shell, and Other ceiling mosaics are made with a similar Restrictions and Amendment to the Organic Materials technique, but may include tesserae of Regulations E. Glass, Faience, and Semi-Precious both stone and glass. Subjects can Stone include landscapes; scenes of deities, In accordance with the Agreement, F. Painting and Plaster humans, or animals; religious imagery; importation of material designated G. Textiles, Basketry, and Rope and activities, such as hunting or below is subject to the restrictions of 19 II. Ethnological fishing. There may also be vegetative, U.S.C. 2606 and § 12.104g(a) of title 19 A. Stone of the Code of Federal Regulations (19 B. Metal floral, or geometric motifs and CFR 12.104g(a)) and will be restricted C. Ceramic and Clay imitations of stone. 3. Architectural and Non- from entry into the United States unless D. Wood the conditions set forth in 19 U.S.C. E. Bone, Ivory, and Shell Architectural Relief Sculptures—Types 2606 and § 12.104c of the CBP F. Glass and Semi-Precious Stone include carved slabs with figural, Regulations (19 CFR 12.104c) are met. G. Leather, Parchment, and Paper vegetative, floral, geometric, or other CBP is amending § 12.104g(a) of the CBP decorative motifs, carved relief vases, Regulations (19 CFR 12.104g(a)) to I. Archaeological Material steles, palettes, and plaques. All types indicate that these import restrictions Archaeological material covered by can sometimes be inscribed in various have been imposed. the Agreement includes categories of languages. Sculptures may be used for Import restrictions listed at 19 CFR objects from the Paleolithic, Neolithic, architectural decoration, including in 12.104g(a) are effective for no more than Phoenician, Greek, Mauritanian, Roman, religious, funerary (e.g., grave markers), five years beginning on the date on Byzantine, and Islamic (Idrisid, votive, or commemorative monuments. which the Agreement enters into force Almoravid, Almohad, Marinid, Saadian, Marble, limestone, and sandstone are with respect to the United States. This and Alaouite) periods and cultures most commonly used. period may be extended for additional ranging in date from approximately 1 4. Monuments—Types include votive periods of not more than five years if it million B.C. to A.D. 1750. statues, funerary or votive stelae, and is determined that the factors which Approximate chronology of well- bases and base revetments made of justified the Agreement still pertain and known archaeological periods and sites: marble, limestone, and other kinds of no cause for suspension of the (a) Paleolithic period (c. 1 million–6500 B.C.): Thomas Quarry, Sidi Agreement exists. The import 1 Import restrictions concerning archaeological restrictions will expire on January 14, Abderrahmane, , Dar material from the Islamic period apply only to those 2026, unless extended. Soltane 2, objects dating from c. A.D. 600–1750.

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stone. These may be painted, carved horses, and geometric and/or floral and thin metal sheets with engraved or with relief sculpture, decorated with elements. impressed designs often used as moldings, and/or carry dedicatory or attachments to furniture or figures. They B. Ceramic funerary inscriptions in various are primarily made of copper alloy, languages. 1. Architectural Elements—These are bronze, or lead. 5. Statuary—Types include large-scale baked clay (terracotta) elements used to 4. Vessels and Containers—Forms representations of deities, humans, decorate buildings. Examples include include bowls, cups, plates, jars, jugs, animals, or hybrid figures made of acroteria, antefixes, painted and relief strainers, cauldrons, and boxes, as well marble, limestone, or sandstone. The plaques, revetments, carved and molded as vessels in the shape of an animal or most common type of statuary are bricks, knobs, plain or glazed roof tiles, part of an animal. This category also freestanding life-sized portrait or and glazed tile wall ornaments and includes scroll and manuscript funerary busts (head and shoulders of panels. containers, reliquaries, and incense an individual) measuring approximately 2. Figurines—These include clay burners. These vessels and containers 1 m to 2.5 m (approximately 3 ft to 8 (terracotta) statues and statuettes in the are made of bronze, silver, or gold, and ft) in height. Statuary figures may be shape of deities, humans, and animals may portray deities, humans, or painted. ranging in height from approximately 5 animals, as well as floral motifs in relief. 6. Figurines—Figurines are small- cm to 20 cm (2 in to 8 in). Ceramic They may include an inscription. scale representations of deities, humans, figurines may be undecorated or 5. Jewelry—Jewelry includes or animals made of limestone, calcite, decorated with paint, appliques, or necklaces, chokers, pectorals, finger marble, or sandstone. inscribed lines. rings, beads, pendants, bells, belts, 7. Sepulchers—Types of burial 3. Vessels and Containers—Types, buckles, earrings, diadems, straight pins containers include sarcophagi, caskets, forms, and decoration vary among and fibulae, bracelets, anklets, girdles, wreaths and crowns, cosmetic reliquaries, and chest urns made of archaeological styles and over time. accessories and tools, metal strigils marble, limestone, or other kinds of Shapes include jars, jugs, bowls, (scrapers), crosses, and lamp holders. stone. Sepulchers may be plain or have pitchers, basins, cups, storage and Jewelry may be made of iron, bronze, figural, geometric, or floral motifs shipping amphorae, cooking pots (such silver, or gold. Metal can be inlaid with painted on them. They may be carved in as Roman mortaria), and large water jugs (zirs). Examples may be painted or items, such as colored stones and glass. relief, and/or have decorative moldings. 6. Seals and Sealings—Seals are small 8. Vessels and Containers—These unpainted, handmade or wheel-made, and may be decorated with burnishes, devices with at least one side engraved include bowls, cups, jars, jugs, lamps, with a design for stamping or sealing. flasks, and smaller funerary urns. glazes, or carvings. Roman terra sigillata and other red gloss wares are Types include finger rings, amulets, and Funerary urns can be egg-shaped vases seals with a shank. Seals can be made with button-topped covers. Vessels and particularly characteristic. Ceramic vessels can depict imagery of humans, of lead, tin, copper, bronze, silver, and/ containers can be made of marble, or gold. Sealings are lead strips, limestone, calcite, or other stone. deities, animals, floral decorations, or inscriptions. stamped in Arabic, used for closing bags 9. Furniture—Types include thrones, 4. Lamps—Lamps can be handmade of coins. tables, and beds, from funerary or or molded, glazed or unglazed, and may 7. Tools—Types include hooks, domestic contexts. Furniture may be have ‘‘saucer,’’ ‘‘slipper,’’ or other weights, axes, scrapers, hammerheads, made from marble or other stone. forms; they typically will have rounded trowels, locks, keys, nails, hinges, 10. Tools and Weapons—Chipped bodies with a hole on the top and in the tweezers, ingots, mirrors, thimbles, and stone types include blades, borers, nozzle, handles or lugs, and may be fibulae (for pinning clothing). Tools may scrapers, sickles, burins, notches, decorated with motifs, such as beading, be made of copper, bronze, or iron. retouched flakes, cores, arrowheads, human faces, and rosettes or other floral 8. Weapons and Armor—This cleavers, knives, chisels, and microliths elements. Inscriptions may also be includes body armor, such as helmets, (small stone tools). Ground stone types found on the body. Later period cuirasses, bracers, shin guards, and include grinders (e.g., mortars, pestles, examples may have straight or round, shields, and horse armor, often millstones, whetstones, querns), bulbous bodies with a flared top and decorated with elaborate designs that choppers, spherical-shaped hand axes, several branches. are engraved, embossed, or perforated. hammers, mace heads, and weights. The 5. Objects of Daily Use—These This also includes both launching most commonly used stones are flint, include game pieces, loom weights, weapons (e.g., spears, javelins, chert, obsidian, and other hard stones. toys, tobacco pipes, and andirons. arrowheads) and hand-to-hand combat 11. Jewelry—Types include seals, weapons (e.g., swords, daggers, etc.) in beads, finger rings, and other personal C. Metal copper, bronze, and iron. adornment made of marble, limestone, 1. Statuary—These are large- and 9. Lamps—Lamps can be open saucer- or various semi-precious stones, small-scale, including deities, human, type or closed, rounded bodies with a including rock crystal, amethyst, jasper, and animal figures in bronze, iron, hole on the top and in the nozzle, agate, steatite, and carnelian. silver, or gold. Common types are large- handles, or lugs. They can include 12. Seals and Stamps—These are scale, freestanding statuary ranging in decorative designs, such as beading, small devices with at least one side height from approximately 1 m to 2.5 m human faces, animals or animal parts, engraved (in intaglio and relief) with a (approximately 3 ft to 8 ft) and life-size and rosettes or other floral elements. design for stamping or sealing. Stamps busts (head and shoulders of an This category includes handheld lamps, and seals can be in the shape of squares, individual). candelabras, braziers, sconces, disks, cones, cylinders, or animals. 2. Reliefs—These include plaques, chandeliers, and lamp stands. 13. Rock Art—Rock art can be painted appliques, steles, and masks, often in 10. Coins—This category includes and/or incised drawings on natural rock bronze. Reliefs may include inscriptions coins of Numidian, Mauretanian, Greek/ surfaces. Tazina-style art is common in various languages. Punic, Roman, Byzantine, Islamic, and from southern Morocco. Common motifs 3. Inscribed or Decorated Sheet Medieval Spanish types that circulated include humans, animals, such as Metal—These are engraved inscriptions primarily in Morocco, ranging in date

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from the fifth century B.C. to A.D. 1750. 3. Jewelry—Jewelry includes bracelets 2. Architectural and Non- Coins were made in copper, bronze, and rings (often twisted with colored Architectural Relief Sculpture—This silver, and gold. Examples may be glass), pendants, and beads in various category includes slabs, plaques, steles, square or round, have writing, and show shapes (e.g., circular, globular), some capitals, and plinths carved with imagery of animals, buildings, symbols, with relief decoration, including multi- religious, figural, floral, or geometric or royal figures. colored ‘‘eye’’ beads. motifs or inscriptions in Arabic. Examples occur primarily in marble, D. Bone, Ivory, Shell, and Other Organic 4. Lamps—Lamps may have a straight limestone, and sandstone. Materials or round, bulbous body, some in the form of a goblet, with flared top, and 3. Memorial Stones and 1. Small Statuary and Figurines— engraved or molded decorations and Tombstones—This category includes These include representations of deities, may have several branches. tombstones, grave markers, and humans, or animals in bone or ivory. cenotaphs. Examples occur primarily in These range from approximately 10 cm F. Painting and Plaster marble and are engraved with Arabic to 1 m (4 in to 40 in) in height. 1. Wall Painting—Wall painting can script. 2. Reliefs, Plaques, Steles, and include figurative (i.e., deities, humans, 4. Vessels and Containers—This Inlays—These are carved and sculpted animals), floral, and/or geometric category includes stone lamps and and may have figurative, floral, and/or motifs, as well as funerary scenes. These containers, such as those used in geometric motifs. are painted on stone, mud plaster, and religious services, as well as smaller 3. Jewelry—Types include amulets, lime plaster (wet—buon fresco—and funerary urns. pendants, combs, pins, spoons, dry—secco fresco), sometimes to imitate B. Metal bracelets, buckles, beads, and pectorals. marble. Jewelry can be made of bone, ivory, and 2. Stucco—This is a fine plaster used 1. Architectural Elements—This spondylus shell. for coating wall surfaces, or molding category includes doors, door fixtures, 4. Seals and Stamps—These are small and carving into architectural such as knockers, bolts, and hinges, devices with at least one side engraved decorations, such as reliefs, plaques, chandeliers, screens, taps, spigots, with a design for stamping or sealing. steles, and inlays. fountains, and sheets. Copper, brass, Seals and stamps can be in the shape of lead, and alloys are most commonly squares, disks, cones, cylinders, or G. Textiles, Basketry, and Rope used. 2. Architectural and Non- animals. 1. Textiles—These include linen, Architectural Relief Sculpture—This 5. Vessels and Luxury Objects—Ivory, hemp, and silk cloth used for burial category includes appliques, plaques, bone, and shell were used either alone wrapping, shrouds, garments, banners, and steles, primarily made of bronze or as inlays in luxury objects, including and sails. These also include linen and and brass. Examples often include furniture, chests and boxes, writing and wool used for garments and hangings. religious, figural, floral, or geometric painting equipment, musical 2. Basketry—Plant fibers were used to motifs. They may also have inscriptions instruments, games, cosmetic make baskets and containers in a variety in Arabic. containers, and combs. Objects can of shapes and sizes, as well as sandals 3. Lamps—This category includes include decorated vessels made of and mats. handheld lamps, candelabras, braziers, ostrich eggshell. 3. Rope—Rope and string were used sconces, chandeliers, and lamp stands. 6. Tools—Tools include bone points for a great variety of purposes, including 4. Vessels and Containers—This and awls, burnishers, needles, spatulae, binding, lifting water for irrigation, category includes containers used for and fish hooks. fishing nets, measuring, lamp wicks, religious services, such as Koran 7. Manuscripts—Manuscripts can be and stringing beads for jewelry and (Qur’an) cases and incense burners. written or painted on specially prepared garments. Brass, copper, silver, and gold are most animal skins (e.g., cattle, sheep, goat, II. Ethnological Material commonly used. Containers may be camel skins) known as parchment. They plain, engraved, hammered, or may be single leaves, bound as a book Ethnological material covered by the otherwise decorated. or codex, or rolled into a scroll. Agreement includes architectural 5. Musical Instruments—This 8. Human Remains—This includes elements, manuscripts, and ceremonial category includes instruments used in skeletal remains from the human body, and ritual objects of the Islamic culture Islamic/Sufi religious ceremonies or preserved in burials or other contexts. from the Saadian and Alaouite dynasties rituals, such as cymbals and trumpets. ranging in date from approximately A.D. E. Glass, Faience, and Semi-Precious 1549 to 1912. This would exclude C. Ceramic and Clay Stone Jewish ceremonial or ritual objects. This category consists of architectural 1. Architectural Elements—These A. Stone elements, which include carved and include glass inlay and tesserae pieces molded brick, and engraved and/or from floor and wall mosaics, mirrors, 1. Architectural Elements—This painted and glazed tile wall ornaments and windowpanes. category includes doors, door frames, and panels, sometimes with Arabic 2. Vessels and Containers—These can window fittings, columns, capitals, script. take various shapes, such as jars, bottles, plinths, bases, lintels, jambs, archways, bowls, beakers, goblets, candle holders, friezes, pilasters, engaged columns, D. Wood perfume jars (unguentaria), and flasks. altars, prayer niches (mihrabs), screens, 1. Architectural Elements—This Vessels and containers may have cut, fountains, inlays, and blocks from walls, category includes doors, door frames incised, raised, enameled, molded, or floors, and ceilings of buildings. and fixtures, windows, window frames, painted decoration. Ancient examples Architectural elements may be plain, panels, beams, balconies, stages, may be engraved and/or light blue, blue- molded, or carved and are often screens, prayer niches (mihrabs), green, green, or colorless, while those decorated with motifs and inscriptions. portable mihrabs (anazas), minbars, and from later periods may include animal, Marble, limestone, and sandstone are ceilings. Examples may be decorated floral, and/or geometric motifs. most commonly used. with religious, geometric, or floral

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motifs or inscriptions, and may be either on specially prepared animal skins (e.g., Executive Orders 12866 and 13771 carved or painted. cattle, sheep, goat, camel skins) known 2. Architectural and Non- as parchment or paper. They occur as CBP has determined that this Architectural Relief Sculpture—This single leaves, bound with leather or document is not a regulation or rule category includes panels, roofs, beams, wood as a book or codex, or rolled into subject to the provisions of Executive balconies, stages, panels, ceilings, and a scroll. Types include the Koran Order 12866 or Executive Order 13771 doors. Examples are carved, inlaid, or (Qur’an) and other Islamic books and because it pertains to a foreign affairs painted with decorations of religious, manuscripts, often written in black or function of the United States, as floral, or geometric motifs or Arabic brown ink, and sometimes embellished described above, and therefore is inscriptions. with painted colorful floral or geometric specifically exempted by section 3(d)(2) 3. Furniture—This category includes motifs. of Executive Order 12866 and section furniture, such as minbars, professorial 2. Vessels and Containers—This 4(a) of Executive Order 13771. chairs, divans, stools, and tables from category includes containers used for Signing Authority Islamic ceremonial or ritual contexts. Islamic religious services, such as Examples can be carved, inlaid, or leather Koran (Qur’an) cases or pouches. This regulation is being issued in painted, and are made from various 3. Musical Instruments—This accordance with 19 CFR 0.1(a)(1) types of wood. category includes instruments used in 4. Vessels and Containers—This pertaining to the Secretary of the Islamic/Sufi religious ceremonies or Treasury’s authority (or that of his/her category includes containers used for rituals, such as leather drums (banadir). religious purposes, such as Koran delegate) to approve regulations related (Qur’an) cases. Examples may be References to customs revenue functions. carved, inlaid, or painted with Architecture of the Islamic West: North List of Subjects in 19 CFR Part 12 decorations in religious, floral, or Africa and the Iberian Peninsula, 700–1800, geometric motifs, or Arabic script. 2020, Jonathan M. Bloom, Yale University Cultural property, Customs duties and 5. Writing Implements—This category Press, New Haven. inspection, Imports, Prohibited includes printing blocks, writing tablets, Corpus nummorum Numidiae merchandise, Reporting and and Islamic study tablets inscribed in Mauretaniaeque, 1955, Jean Mazard, et al., ´ recordkeeping requirements. Arabic and used for teaching the Koran Arts et metiers graphiques, Paris. Etude sur la numismatique et l’histoire Amendment to CBP Regulations (Qur’an). mone´taire du Maroc i: Corpus des dirhams 6. Musical Instruments—This idrissites et contemporains, 1971, Daniel For the reasons set forth above, part category includes instruments used in Eustache, Banque du Maroc, Rabat. 12 of title 19 of the Code of Federal Islamic/Sufi religious ceremonies or Etude sur la numismatique et l’histoire Regulations (19 CFR part 12), is rituals, such as frame drums (banadir). mone´taire du Maroc ii: Corpus des Monnaies 7. Beads—This category includes Alaouites, 1984, Daniel Eustache, Banque du amended as set forth below: Islamic prayer beads (mas’baha). Maroc, Rabat. PART 12—SPECIAL CLASSES OF Examples may be plain or decorated Le Maroc Me´die´val: Un Empire de l’Afrique ` MERCHANDISE with carved designs. a l’Espagne, 2014, October 15, 2014 ed., Yannick Lintz, Claire De´le´ry, and Bulle Tuil E. Bone, Ivory, and Shell Leonetti, Louvre Museum, Paris. ■ 1. The general authority citation for Les Bronzes Antiques du Maroc, Etudes et 1. Architectural Elements—This travaux d’arche´ologie marocaine, 1969–1994, part 12 and the specific authority category includes inlays for religious Christiane Boube-Piccot, E´ ditions marocaines citation for § 12.104g continue to read as decorative and architectural elements. et internationales, Tangier. follows: 2. Ceremonial Paraphernalia—This The Roman Provincial Coinage, Multiple Authority: 5 U.S.C. 301; 19 U.S.C. 66, Volumes, 1992–, Andrew Burnett, et al., The category includes boxes, reliquaries 1202 (General Note 3(i), Harmonized Tariff British Museum Press, London. (and their contents), plaques, pendants, Schedule of the United States (HTSUS)), candelabra, and stamp and seal rings. Inapplicability of Notice and Delayed 1624; F. Glass and Semi-Precious Stone Effective Date * * * * * 1. Architectural Elements—This This amendment involves a foreign Sections 12.104 through 12.104i also category includes windowpanes, mosaic affairs function of the United States and issued under 19 U.S.C. 2612; elements, inlays, and stained glass. is, therefore, being made without notice * * * * * 2. Vessels and Containers—This or public procedure (5 U.S.C. 553(a)(1)). ■ category includes glass and enamel For the same reason, a delayed effective 2. In § 12.104g, the table in paragraph mosque lamps and ritual vessels. date is not required under 5 U.S.C. (a) is amended by adding Morocco to 3. Beads—This category includes 553(d)(3). the list in alphabetical order to read as Islamic prayer beads (mas’baha) in glass follows: Regulatory Flexibility Act or semi-precious stones. Because no notice of proposed § 12.104g Specific items or categories G. Leather, Parchment, and Paper rulemaking is required, the provisions designated by agreements or emergency actions. 1. Books and Manuscripts— of the Regulatory Flexibility Act (5 Manuscripts can be written or painted U.S.C. 601 et seq.) do not apply. (a) * * *

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State party Cultural property Decision No.

******* Morocco ...... Archaeological material from Morocco ranging in date from approximately 1 million B.C. to A.D. CBP Dec. 21–02. 1750, and ethnological material from Morocco ranging in date from approximately A.D. 1549 to 1912.

*******

* * * * * used from January 14, 2021 until Under 5 U.S.C. 553(d)(3), the Coast Mark A. Morgan, the Chief Operating January 22, 2021. Guard finds that good cause exists for Officer and Senior Official Performing ADDRESSES: To view documents making this rule effective less than 30 the Duties of the Commissioner, having mentioned in this preamble as being days after publication in the Federal reviewed and approved this document, available in the docket, go to https:// Register. Delaying the effective date of is delegating the authority to www.regulations.gov, type USCG–2021– this rule would be contrary to the public electronically sign this notice document 0020 in the ‘‘SEARCH’’ box and click interest because immediate action is to Robert F. Altneu, who is the Director ‘‘SEARCH.’’ Click on Open Docket needed to respond to the potential of the Regulations and Disclosure Law Folder on the line associated with this safety hazards associated with the line Division for CBP, for purposes of rule. pulling operations in the vicinity of publication in the Federal Register. Natchez, MS. FOR FURTHER INFORMATION CONTACT: If Robert F. Altneu, you have questions on this rule, call or III. Legal Authority and Need for Rule Director, Regulations & Disclosure Law email MSTC Lindsey Swindle, U.S. The Coast Guard is issuing this rule Division, Regulations & Rulings, Office of Coast Guard; telephone 901–521–4813, under authority in 46 U.S.C. 70034 Trade, U.S. Customs and Border Protection. email [email protected]. (previously 33 U.S.C. 1231). The Approved: January 15, 2021. SUPPLEMENTARY INFORMATION: Captain of the Port (COTP) Sector Lower Timothy E. Skud, Mississippi River (LMR) has determined Deputy Assistant Secretary of the Treasury. I. Table of Abbreviations that potential hazards associated with [FR Doc. 2021–01394 Filed 1–15–21; 4:15 pm] CFR Code of Federal Regulations the line pulling operations at Mile Marker (MM) 369.0, scheduled to start BILLING CODE 9111–14–P COTP Captain of the Port DHS Department of Homeland Security on January 14, 2021, would be a safety FR Federal Register concern for all persons and vessels on NPRM Notice of Proposed Rulemaking the Lower Mississippi River between DEPARTMENT OF HOMELAND § Section MM 368.0 and MM 370.0 through SECURITY U.S.C. United States Code February 5, 2021. This rule is needed to II. Background Information and protect persons, property, infrastructure, Coast Guard Regulatory History and the marine environment in all waters of the LMR within the safety 33 CFR Part 165 The Coast Guard is issuing this zone while line pulling operations are temporary rule without prior notice and being conducted. [Docket Number USCG–2021–0020] opportunity to comment pursuant to authority under section 4(a) of the IV. Discussion of the Rule RIN 1625–AA00 Administrative Procedure Act (APA) (5 This rule establishes a temporary Safety Zone; Lower Mississippi River, U.S.C. 553(b)). This provision safety zone from January 14, 2021 to Mile Marker 368 and 370, Natchez, MS authorizes an agency to issue a rule February 5, 2021. The safety zone will without prior notice and opportunity to cover all navigable waters of the LMR AGENCY: Coast Guard, DHS. comment when the agency for good from MM 368.0 to MM 370.0. The ACTION: Temporary final rule. cause finds that those procedures are duration of this safety zone is intended ‘‘impracticable, unnecessary, or contrary to ensure the safety of waterway users SUMMARY: The Coast Guard is to the public interest.’’ Under 5 U.S.C. on these navigable waters during, the establishing a temporary safety zone for 553(b)(B), the Coast Guard finds that line pulling operations. all navigable waters of the Lower good cause exists for not publishing a Entry of persons or vessels into this Mississippi River (LMR), between Mile notice of proposed rulemaking (NPRM) safety zone is prohibited unless Marker 368 and 370. The safety zone is with respect to this rule because it is authorized by the COTP or a designated needed to protect persons, property, and impracticable. Immediate action is representative. A designated the marine environment from the needed to protect persons and property representative is a commissioned, potential safety hazards associated with from the potential safety hazards warrant, or petty officer of the U.S. line pulling operations in the vicinity of associated with line pulling operations. Coast Guard assigned to units under the the Natchez, MS. Entry of persons or The NPRM process would delay the operational control of USCG Sector vessels into this zone is prohibited establishment of the safety zone until Lower Mississippi River. Persons or unless authorized by the Captain of the after the date of the event and vessels seeking to enter the safety zones Port Sector Lower Mississippi River or compromise public safety. We must must request permission from the COTP a designated representative. establish this temporary safety zone or a designated representative on VHF– DATES: This rule is effective without immediately and lack sufficient time to FM channel 16 or by telephone at 901– actual notice from January 22, 2021 provide a reasonable comment period 521–4822. If permission is granted, all until February 5, 2021. For the purposes and then consider those comments persons and vessels shall comply with of enforcement, actual notice will be before issuing the rule. the instructions of the COTP or

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designated representative. The COTP or V.A above, this rule will not have a E. Unfunded Mandates Reform Act a designated representative will inform significant economic impact on any The Unfunded Mandates Reform Act the public of the enforcement times and vessel owner or operator. of 1995 (2 U.S.C. 1531–1538) requires date for this safety zone through Under section 213(a) of the Small Federal agencies to assess the effects of Broadcast Notices to Mariners (BNMs), Business Regulatory Enforcement their discretionary regulatory actions. In Local Notices to Mariners (LNMs), and/ Fairness Act of 1996 (Pub. L. 104–121), particular, the Act addresses actions or Marine Safety Information Bulletins we want to assist small entities in that may result in the expenditure by a (MSIBs), as appropriate. understanding this rule. If the rule State, local, or tribal government, in the V. Regulatory Analyses would affect your small business, aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or We developed this rule after organization, or governmental more in any one year. Though this rule considering numerous statutes and jurisdiction and you have questions will not result in such an expenditure, Executive orders related to rulemaking. concerning its provisions or options for compliance, please call or email the we do discuss the effects of this rule Below we summarize our analyses elsewhere in this preamble. based on a number of these statutes and person listed in the FOR FURTHER Executive orders, and we discuss First INFORMATION CONTACT section. F. Environment Amendment rights of protestors. Small businesses may send comments We have analyzed this rule under A. Regulatory Planning and Review on the actions of Federal employees Department of Homeland Security who enforce, or otherwise determine Directive 023–01, Rev. 1, associated Executive Orders 12866 and 13563 compliance with, Federal regulations to implementing instructions, and direct agencies to assess the costs and the Small Business and Agriculture Environmental Planning COMDTINST benefits of available regulatory Regulatory Enforcement Ombudsman 5090.1 (series), which guide the Coast alternatives and, if regulation is and the Regional Small Business Guard in complying with the National necessary, to select regulatory Regulatory Fairness Boards. The Environmental Policy Act of 1969 (42 approaches that maximize net benefits. Ombudsman evaluates these actions U.S.C. 4321–4370f), and have Executive Order 13771 directs agencies annually and rates each agency’s determined that this action is one of a to control regulatory costs through a responsiveness to small business. If you category of actions that do not budgeting process. This rule has not wish to comment on actions by individually or cumulatively have a been designated a ‘‘significant employees of the Coast Guard, significant effect on the human regulatory action,’’ under Executive call 1–888–REG–FAIR (1–888–734– environment. This rule involves a safety Order 12866. Accordingly, this rule has 3247). The Coast Guard will not retaliate zone that will prohibit entry on a one- not been reviewed by the Office of against small entities that question or mile stretch of the Lower Mississippi Management and Budget (OMB), and complain about this rule or any policy River. It is categorically excluded from pursuant to OMB guidance it is exempt or action of the Coast Guard. further review under paragraph L60 of from the requirements of Executive Appendix A, Table 1 of DHS Instruction Order 13771. C. Collection of Information Manual 023–01–001–01, Rev. 1. A This regulatory action determination Record of Environmental Consideration This rule will not call for a new is based on the size, location, and supporting this determination is collection of information under the duration of the safety zone. Vessel available in the docket. For instructions Paperwork Reduction Act of 1995 (44 traffic will be prohibited from entering on locating the docket, see the U.S.C. 3501–3520). this temporary safety zone, which will ADDRESSES section of this preamble. impact a one-mile stretch of Lower D. Federalism and Indian Tribal Mississippi River for approximately 23 G. Protest Activities Governments days. Moreover, The Coast Guard will The Coast Guard respects the First issue a Broadcast Notice to Mariners via A rule has implications for federalism Amendment rights of protesters. VHF–FM marine channel 16 about the under Executive Order 13132, Protesters are asked to call or email the safety zone, and the rule allows vessels Federalism, if it has a substantial direct person listed in the FOR FURTHER to seek permission to enter the zone. effect on the States, on the relationship INFORMATION CONTACT section to B. Impact on Small Entities between the National Government and coordinate protest activities so that your the States, or on the distribution of message can be received without The Regulatory Flexibility Act of power and responsibilities among the jeopardizing the safety or security of 1980, 5 U.S.C. 601–612, as amended, various levels of government. We have people, places or vessels. requires Federal agencies to consider analyzed this rule under that Order and the potential impact of regulations on List of Subjects in 33 CFR Part 165 have determined that it is consistent small entities during rulemaking. The with the fundamental federalism Harbors, Marine safety, Navigation term ‘‘small entities’’ comprises small principles and preemption requirements (water), Reporting and recordkeeping businesses, not-for-profit organizations described in Executive Order 13132. requirements, Security measures, that are independently owned and Waterways. operated and are not dominant in their Also, this rule does not have tribal For the reasons discussed in the fields, and governmental jurisdictions implications under Executive Order preamble, the Coast Guard amends 33 with populations of less than 50,000. 13175, Consultation and Coordination CFR part 165 as follows: The Coast Guard certifies under 5 U.S.C. with Indian Tribal Governments, 605(b) that this rule will not have a because it does not have a substantial PART 165—REGULATED NAVIGATION significant economic impact on a direct effect on one or more Indian AREAS AND LIMITED ACCESS AREAS substantial number of small entities. tribes, on the relationship between the While some owners or operators of Federal Government and Indian tribes, ■ 1. The authority citation for part 165 vessels intending to transit the or on the distribution of power and continues to read as follows: temporary safety zone may be small responsibilities between the Federal Authority: 46 U.S.C. 70034, 70051; 33 CFR entities, for the reasons stated in section Government and Indian tribes. 1.05–1, 6.04–1, 6.04–6, and 160.5;

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Department of Homeland Security Delegation ACTION: Final rule; amended assessment to provide flat fee rates for No. 0170.1. determination. smaller licensees and services that ■ 2. Add § 165.T08–0020 to read as exclusively operate download stores SUMMARY: The Copyright Royalty Judges follows: under pass-through licenses received are amending regulations to revise the from record labels. The motion also § 165.T08–0020 Safety Zone; Lower allocation of the initial administrative sought certain clarifications and Mississippi river, Mile Marker 368 and 370, assessment To fund the mechanical technical changes in terms based upon Natchez, MS. licensing collective. the DLC and MLC’s improved (a) Location. The following area is a DATES: Effective: January 22, 2021. understanding of operational needs safety zone: All navigable waters of the ADDRESSES: Docket: For access to the gained since the initial administrative Lower Mississippi River from Mile docket to read submitted documents, go assessment was adopted. The proposed Marker (MM) 368 through MM 370. to eCRB, the Copyright Royalty Board’s amendments do not affect the amount of (b) Regulations. (1) Under the general electronic filing and case management the assessments. safety zone regulations in subpart C of system at https://app.crb.gov/ and Based on the representations that the this part, you may not enter the safety search for docket number 19–CRB–0009 current allocation methodology could zone described in paragraph (a) of this AA. have ‘‘significant impacts on smaller section unless authorized by the Captain FOR FURTHER INFORMATION CONTACT: Licensees’’, that the revised allocation of the Port Sector Lower Mississippi Anita Blaine, CRB Program Specialist, methodology ‘‘is specifically calculated River (COTP) or the COTP’s designated by telephone at (202) 707–7658 or by to address market participation by representative. A designated email at [email protected]. smaller Licensees and pass-through representative is a commissioned, SUPPLEMENTARY INFORMATION: On July 8, download stores in an equitable warrant, or petty officer of the U.S. 2019, the Copyright Royalty Board manner, and has support from a diverse Coast Guard assigned to units under the initiated the Determination and cross-section of the Licensee industry’’, operational control of USCG Sector Allocation of Initial Administrative and that the MLC also supports the Lower Mississippi River. Assessment to Fund Mechanical amendments and has determined that (2) To seek permission to enter, Licensing Collective proceeding by they are administrable, the Judges find contact the COTP or the COTP’s notice published in the Federal Register good cause to amend the regulations representative via VHF–FM channel 16 at 84 FR 32475, pursuant to the Orrin pursuant to their authority under 17 or by telephone at 901–521–4822. Those G. Hatch-Bob Goodlatte Music U.S.C. 115(d)(7)(D)(vi). in the safety zone must comply with all Modernization Act, Public Law 115– lawful orders or directions given to List of Subjects in 37 CFR Part 390 264, 132 Stat. 3676 (Oct. 11, 2018), 17 them by the COTP or the COTP’s U.S.C. 115(d)(7)(D)(vi) and 801(b)(8) Copyright, Licensing and registration, designated representative. (2018). The purpose of this proceeding Music, Phonorecords, Recordings, (c) Effective period. This section is was to determine the initial Royalties. effective without actual notice from administrative assessment that digital January 22, 2021 until February 5, 2021. Final Regulations music providers and any significant For the purposes of enforcement, actual nonblanket licensees must pay to fund For the reasons set forth in the notice will be used from January 14, the collective total costs of the preamble, the Copyright Royalty Judges 2021 until January 22, 2021. mechanical licensing collective. amend 37 CFR part 390 as follows: (d) Information broadcasts. The COTP Pursuant to a settlement of that or a designated representative will PART 390—AMOUNTS AND TERMS proceeding, the Copyright Royalty inform the public of the enforcement FOR ADMINISTRATIVE Judges (‘‘Judges’’) adopted a negotiated times and date for this safety zone ASSESSMENTS TO FUND agreement that had been agreed to by through Broadcast Notices to Mariners, MECHANICAL LICENSING the mechanical licensing collective Local Notices to Mariners, and/or Safety COLLECTIVE (MLC) and the digital licensee Marine Information Broadcasts, as coordinator (DLC) as to both the amount appropriate. ■ 1. The authority citation for part 390 of the assessment and the method of continues to read as follows: Dated: January 13, 2021. allocation of that assessment among R.S. Rhodes, digital music providers and significant Authority: 17 U.S.C. 115, 801(b). Captain, U.S. Coast Guard, Captain of the nonblanket licensees and published ■ 2. Revise § 390.1 to read as follows: Port Sector Lower Mississippi River. final regulations implementing that § 390.1 Definitions. [FR Doc. 2021–01329 Filed 1–21–21; 8:45 am] settlement. See 85 FR 832 (Jan. 8, 2020); BILLING CODE 9110–04–P see also 37 CFR 390. Administrative assessment has the On December 18, 2020, the DLC and meaning set forth in 17 U.S.C. 115(e)(3). the MLC jointly filed a motion with the Aggregate Sound Recordings Count LIBRARY OF CONGRESS Judges to modify the terms of means the sum of the Unique Sound implementation of the initial Recordings Counts of each and every Copyright Royalty Board administrative assessment, invoking the Allocated Licensee, calculated over the Judges’ authority under 17 U.S.C. respective Quarterly Allocation 37 CFR Part 390 115(d)(7)(D)(vi) which gives the Judges calculation period. ‘‘continuing authority to amend a Allocated Licensees mean licensees as [Docket No. 19–CRB–0009 AA] determination of an administrative set forth in § 390.3(a) who are allocated Determination and Allocation of Initial assessment . . . to modify the terms of an additional share of assessments Administrative Assessment To Fund implementation, for good cause.’’ In beyond the annual minimum fee. Mechanical Licensing Collective particular, the motion sought Allocated Licensee Assessment Pool modification of the existing regulations means an amount equaling 50% of each AGENCY: Copyright Royalty Board, to provide a revised method of Annual Assessment and Quarterly Library of Congress. allocation of the administrative Allocation.

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Annual Assessment means the 7.5% of the Aggregate Sound less during the relevant Annual administrative assessment for each Recordings Count of all Allocated Calculation Period shall pay $2,500 and calendar year beginning with the Licensees. shall be Flat Fee Licensees for the calendar year 2021. Threshold Licensee Assessment Pool respective Annual Assessment; Annual Calculation Period means the means an amount equaling 50% of each (ii) Licensees that have a Unique calculation period for annual minimum Annual Assessment and Quarterly Sound Recordings Count of between fees, as set forth in § 390.3(b). Allocation. 10,001 and 25,000 during the relevant Annual minimum fee means the Unique Sound Recordings Count Annual Calculation Period shall pay minimum amount each Licensee shall means, for each Licensee, the number of $5,000 and shall be Flat Fee Licensees pay for each Annual Assessment period, unique sound recordings used and for the respective Annual Assessment; as set forth in § 390.3. reported per month by such Licensee in (iii) Licensees that have a Unique Blanket Licensee means a digital Section 115 covered activities, such as Sound Recordings Count of between music provider that is engaged, in all or would be reflected in the information 25,001 and 50,000 during the relevant in part, in covered activities pursuant to required to be reported under 17 U.S.C. Annual Calculation Period shall pay a compulsory blanket license described 115(d), calculated as a monthly average $10,000 and shall be Flat Fee Licensees in 17 U.S.C. 115(d). over the respective calculation period, for the respective Annual Assessment, Certified Minimum Fee Disclosure except that a sound recording of a where such Annual Calculation Period means a Licensee’s certified statement musical work that is in the public is for the Annual Assessment for the setting forth its Unique Sound domain and designated as such in a calendar year 2024 or earlier; otherwise Recordings Count for the respective monthly report of use shall not count such Licensees shall pay $60,000 and calculation period. towards the Licensee’s Unique Sound shall be Allocated Licensees for the Covered activity has the meaning set Recordings Count. For example, a respective Annual Assessment; forth in 17 U.S.C. 115(e)(7). Licensee’s Unique Sound Recordings (iv) Licensees that have a Unique Digital licensee coordinator or DLC Count for a Quarterly Allocation Sound Recordings Count of between has the meaning set forth in 17 U.S.C. calculation period will be calculated by 50,001 and 100,000 during the relevant 115(e)(9). adding together the counts of unique Annual Calculation Period shall pay ECI means the Employment Cost sound recordings reported by such $20,000 and shall be Flat Fee Licensees Index for total compensation (not Licensee to the MLC during each month for the respective Annual Assessment, seasonally adjusted), all civilian of that quarter and dividing that sum by where such Annual Calculation Period workers, as published on the website of three. A Licensee’s Unique Sound is for the Annual Assessment for the the United States Department of Labor, Recordings Count for an Annual calendar year 2024 or earlier; otherwise Bureau of Labor Statistics, for the most Calculation Period will be calculated by such Licensees shall pay $60,000 and recent 12-month period for which data adding together the counts of unique shall be Allocated Licensees; and are available on the date that is 60 days sound recordings reported by such (v) Licensees that have a Unique prior to the start of the calendar year. Licensee to the MLC during each month Sound Recordings Count greater than Flat Fee Licensees mean licensees as of that twelve-month period and 100,000 during the relevant Annual set forth in § 390.3(a) who are not dividing that sum by twelve. In the case Calculation Period shall pay an annual allocated an additional share of of a Licensee that was engaged in minimum fee of $60,000 and shall be assessments beyond the annual covered activities only for part of a Allocated Licensees for the respective minimum fee. Quarterly Allocation calculation period Annual Assessment. License availability date has the or Annual Calculation Period, the (2) Download store annual fee. meaning set forth in 17 U.S.C. monthly average shall be calculated Licensees that engage in covered 115(e)(15). using only the calendar months that the activities exclusively under authority Licensee means either a Blanket Licensee was engaged in covered obtained from licensors of sound Licensee or a Significant Nonblanket activities. In the case of a Licensee that recordings to make and distribute Licensee. was not engaged in covered activities permanent downloads of musical works Mechanical licensing collective or during any part of a Quarterly embodied in such sound recordings MLC has the meaning set forth in 17 Allocation calculation period or Annual pursuant to individual download U.S.C. 115(e)(18). Calculation Period, the monthly average licenses or voluntary licenses shall be New Licensee means a Licensee that shall be zero. Within each month’s Flat Fee Licensees and pay the begins engaging in covered activities on usage reports from a particular Licensee, following amounts: or after the license availability date. a sound recording reported multiple (i) $2,500 if the Licensee has a Unique Notice of license has the meaning set times with the same metadata would be Sound Recordings Count of 50,000 or forth in 17 U.S.C. 115(e)(22). counted as a single sound recording, less during the relevant Annual Notice of nonblanket activity has the and a sound recording reported multiple Calculation Period. meaning set forth in 17 U.S.C. times each with different metadata (ii) $5,000 if the Licensee has a 115(e)(23). would be counted multiple times, once Unique Sound Recordings Count of Quarterly Allocation means each of for each reporting with new or different between 50,001 to 100,000 during the four equal parts of each Annual metadata. prior Annual Calculation Period. Assessment, to be paid on a calendar ■ 3. Revise § 390.3 to read as follows: (iii) $10,000 if the Licensee has a quarterly basis. Unique Sound Recordings Count of Significant Nonblanket Licensee has § 390.3 Annual minimum fees. between 100,001 to 250,000 during the the meaning set forth in 17 U.S.C. (a) Amounts. Subject to paragraph (e) prior Annual Calculation Period. 115(e)(31). of this section, Licensees shall pay (iv) $20,000 if the Licensee has a Startup Assessment means the one- annual minimum fees as follows— Unique Sound Recordings Count of time administrative assessment for the (1) In general. Except as provided in between 250,001 to 500,000 during the startup phase of the MLC. paragraph (a)(2) of this section— prior Annual Calculation Period. Threshold Licensee means an (i) Licensees that have a Unique (v) $60,000 if the Licensee has a Allocated Licensee that reports at least Sound Recordings Count of 10,000 or Unique Sound Recordings Count of

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greater than 500,000 during the prior provided timely reporting, the MLC may Assessment Pool shall be allocated on a Annual Calculation Period. instead, in its discretion, use the most pro rata basis across Threshold (b) Annual Calculation Period. The recent reporting from that New Licensee Licensees based on each Threshold calculation period for annual minimum for such calculation. If such New Licensee’s share of the aggregate Unique fees shall be the 12-month period that Licensee is calculated to have a Unique Sound Recordings Counts of all ends on the September 30th Sound Recordings Count that exceeds Threshold Licensees. In the event that immediately preceding the start of the the amount that would qualify it to be no Threshold Licensees exist for a assessment period (e.g., the annual a Flat Fee Licensee under paragraph Quarterly Allocation, the Threshold minimum fee calculation period for the (a)(1) of this section, it shall be deemed Licensee Assessment Pool shall become 2021 Annual Assessment shall be an Allocated Licensee for that Quarterly payable by all Allocated Licensees in October 1, 2019 to September 30, 2020). Allocation and the remainder of the the same manner as the Allocated (c) Calculation by Licensee calendar year and shall be invoiced and Licensee Assessment Pool. certification (2021 and 2022)—(1) 2021. pay the assessment as calculated in (b) Calculation periods and timing. Each Licensee in operation on or before § 390.4 for the respective quarters, with The calculation period for each the license availability date shall submit such New Licensee’s Unique Sound Quarterly Allocation shall be the three- to the MLC,—no later than February 15, Recordings Count to be included in the month period that ends three months 2021, its Certified Minimum Fee Aggregate Sound Recording Count for prior to the start of the respective Disclosure for the 2021 annual such quarters. quarter, except that the calculation minimum fee (i.e., for the period from (3) A New Licensee shall be subject to period for the Quarterly Allocation for October 1, 2019, to September 30, 2020). the provisions of paragraphs (a) through the first and second quarters of 2021 Each Licensee shall submit the (d) of this section, as applicable, to shall be the same as for the annual appropriate annual minimum fee as determine the amount and timing of the minimum fee for the 2021 Annual calculated under paragraph (a) of this annual minimum fees owed for the Assessment and shall be calculated section for the 2021 Assessment calendar year following the year when based upon the information provided in simultaneously with its Certified the Licensee begins engaging in covered the Certified Minimum Fee Disclosures, Minimum Fee Disclosure. activities, and for such purposes a New as required by this part. The MLC shall (2) 2022. Each Licensee shall submit Licensee shall be treated as having a make all calculations for each respective to the MLC by November 1, 2021, a Unique Sound Recordings Count of zero period based upon the reporting for Certified Minimum Fee Disclosure for for the Annual Calculation Period if it such period received from Licensees as the 2022 Assessment and shall pay by began engaging in covered activities of the time of calculation by the MLC, January 15, 2022, the appropriate after the end of the Annual Calculation which calculation time shall not be annual minimum fee. Period. A New Licensee that has been earlier than the legal deadline for (d) Calculation by the MLC (2023 and deemed an Allocated Licensee pursuant submission of reporting by Licensees for subsequent years). Beginning with the to paragraph (e)(2) of this section shall the respective period. In the event that 2023 Assessment and continuing in be subject to the provisions of a Licensee has not provided timely subsequent years, the MLC will paragraphs (a) through (d) of this reporting for the respective calculation calculate each Licensee’s annual section, as applicable, to determine its period at the time the MLC calculates a minimum fee based on usage reporting status as a Flat Fee Licensee or Quarterly Allocation, the MLC may received from Licensees pursuant to 17 Allocated Licensee, for calendar years instead use, in its discretion, the most U.S.C. 115(d)(4). The MLC shall send following the calendar year in which it recent reporting from that Licensee to invoices for the appropriate annual is first deemed an Allocated Licensee. determine that Licensee’s Unique Sound minimum fee to each Licensee. ■ 4. Revise § 390.4 to read as follows: Recordings Count, for the purposes of Licensees shall pay the annual calculating the Quarterly Allocation. minimum fee invoices from the MLC by § 390.4 Annual Assessment allocation and payment. (c) Invoicing and payment of the later of: allocation—(1) Deadline for payment. (i) (a) Allocation formula. Each Annual (1) 30 days from receipt of the invoice Invoices from the MLC for Quarterly Assessment shall be divided into four from the MLC; or Allocation shares shall be payable (2) January 15th of the respective equal Quarterly Allocations, after first pursuant to the MLC invoice no later Annual Assessment year. subtracting annual fees payable by Flat than 45 days after receipt of the invoice (e) New licensees. (1) A New Licensee Fee Licensees. The MLC may adjust shall remit the lowest annual fee set from the MLC. Quarterly Allocations to compensate for (ii) Invoices from the MLC to forth in paragraph (a)(1) or (2) of this any adjustments to the Flat Fee Licensee Licensees shall be deemed received on section, as applicable, along with its annual fees that occur after the initial the business day after electronic notice of license or notice of nonblanket division of the Annual Assessment. transmission. activity to be attributable to the calendar Each Quarterly Allocation shall be (2) Format of invoices. (i) The year in which such Licensee begins allocated and paid on a calendar quarterly invoices issued by the MLC engaging in covered activities. quarterly basis. Each Quarterly shall include at least the following (2) A New Licensee shall initially be Allocation shall be divided into two information, where applicable: deemed a Flat Fee Licensee. When the equal parts, allocated among Licensees (A) Invoice issuance date; MLC calculates the Quarterly Allocation according to the following formula: (B) Invoice payment due date; with the first calculation period (1) Allocated Licensee Assessment (C) Amount owed, by share of pursuant to § 390.4(b) during which the Pool. The Allocated Licensee Allocated Licensee Assessment Pool New Licensee was engaged in covered Assessment Pool shall be allocated on a and Threshold Licensee Assessment activities, whether such activities were pro rata basis across all Allocated Pool; for all or part of the calculation period, Licensees based on each Licensee’s (D) Allocation of Startup Assessment; the MLC shall calculate the New share of the Aggregate Sound (E) Offset of minimum fee payment Licensee’s Unique Sound Recording Recordings Count. against quarterly assessment; and Count for that calculation period. In the (2) Threshold Licensee Assessment (F) Amount of credit for un-recouped event that such New Licensee has not Pool. The Threshold Licensee minimum fee.

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(ii) Invoices issued as a result of an Dated: December 29, 2020. appear at subpart H of 50 CFR part 600 allocation adjustment shall include all Jesse M. Feder, and 50 CFR part 679. of the information set forth in Chief Copyright Royalty Judge. The A season apportionment of the paragraphs (c)(2)(i)(A) through (F) of Approved by: 2021 Pacific cod TAC allocated to this section that may be relevant, as well catcher/processors using pot gear in the Carla D. Hayden, as an explanation of the change from the BSAI is 850 metric tons (mt) as prior invoices that are affected, and the Librarian of Congress. established by the final 2020 and 2021 reason(s) for the adjustment. [FR Doc. 2020–29194 Filed 1–21–21; 8:45 am] harvest specifications for groundfish in (d) Late reporting. The MLC shall BILLING CODE 1410–72–P the BSAI (85 FR 13553, March 9, 2020) promptly notify the DLC of any known and inseason adjustment (85 FR 83473, Licensees who have not timely December 22, 2020). submitted reports of usage as required DEPARTMENT OF COMMERCE each month pursuant to 17 U.S.C. In accordance with § 679.20(d)(1)(iii), 115(d) and 37 CFR part 210. National Oceanic and Atmospheric the Administrator, Alaska Region, (e) Recalculation of Allocated Administration NMFS (Regional Administrator), has Assessment invoices. The MLC may, in determined that the A season its discretion, recalculate allocations 50 CFR Part 679 apportionment of the 2021 Pacific cod and adjust prior invoices, with the TAC allocated as a directed fishing written consent of the DLC, within [Docket No. 200227–0066; RTID 0648– allowance to catcher/processors using XA770] twelve months after the initial issuance pot gear in the BSAI will soon be reached. Consequently, NMFS is of such invoices, in circumstances Fisheries of the Exclusive Economic prohibiting directed fishing for Pacific including, but not limited to, where new Zone Off Alaska; Pacific Cod by Pot cod by pot catcher/processors in the usage reporting is received or where a Catcher/Processors in the Bering Sea BSAI. correction would alter one or more of and Aleutian Islands Management Area any Licensee’s Quarterly Allocation While this closure is effective the shares by at least 10%. AGENCY: National Marine Fisheries maximum retainable amounts at (f) Recoupment of minimum-fee. Each Service (NMFS), National Oceanic and § 679.20(e) and (f) apply at any time Allocated Licensee’s minimum fee will Atmospheric Administration (NOAA), during a trip. be offset against its Quarterly Allocation Commerce. Classification shares, if any, and additional payment ACTION: Temporary rule; closure. will not be due from a Licensee unless NMFS issues this action pursuant to and until its total Quarterly Allocation SUMMARY: NMFS is prohibiting directed section 305(d) of the Magnuson-Stevens shares exceed its annual minimum fee fishing for Pacific cod by catcher/ Act. This action is required by 50 CFR payment. To the extent that an processors using pot gear in the Bering part 679, which was issued pursuant to Allocated Licensee’s minimum fee Sea and Aleutian Islands management section 304(b), and is exempt from exceeds that Licensee’s Quarterly area (BSAI). This action is necessary to review under Executive Order 12866. Allocation shares for a given prevent exceeding the A season Assessment period, the excess amounts apportionment of the 2021 Pacific cod Pursuant to 5 U.S.C. 553(b)(B), there will be pooled and credited pro rata to total allowable catch (TAC) allocated to is good cause to waive prior notice and all Allocated Licensees based on the catcher/processors using pot gear in the an opportunity for public comment on Quarterly Allocation shares for the first BSAI. this action, as notice and comment would be impracticable and contrary to quarter of the following year. DATES: Effective 1200 hours, Alaska the public interest, as it would prevent (g) Reports to DLC. The MLC shall local time (A.l.t.), January 16, 2021, NMFS from responding to the most report to the DLC no later than 75 days through 1200 hours, A.l.t., September 1, recent fisheries data in a timely fashion after the end of every quarter the 2021. Aggregate Sound Recordings Count for and would delay the closure of Pacific that quarter. FOR FURTHER INFORMATION CONTACT: cod by catcher processors using pot gear (h) Startup Assessment allocation and Krista Milani, 907–581–2062. in the BSAI. NMFS was unable to payment. The Startup Assessment shall SUPPLEMENTARY INFORMATION: NMFS publish a notice providing time for be allocated and paid in the same manages the groundfish fishery in the public comment because the most manner and on the same dates as the BSAI exclusive economic zone recent, relevant data only became 2021 Annual Assessment, including as according to the Fishery Management available as of January 14, 2021. to each of the applicable provisions Plan for Groundfish of the Bering Sea Authority: 16 U.S.C. 1801 et seq. above, and shall be separately itemized and Aleutian Islands Management Area in invoices from the MLC to Licensees. (FMP) prepared by the North Pacific Dated: January 15, 2021. Pursuant to § 390.3, a single annual Fishery Management Council under Kelly Denit, minimum fee shall be assessed for the authority of the Magnuson-Stevens Director, Office of Sustainable Fisheries, 2021 Annual Assessment, and no Fishery Conservation and Management National Marine Fisheries Service. additional annual minimum fee shall be Act. Regulations governing fishing by [FR Doc. 2021–01354 Filed 1–15–21; 4:15 pm] assessed for the Startup Assessment. U.S. vessels in accordance with the FMP BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 86, No. 13

Friday, January 22, 2021

This section of the FEDERAL REGISTER Commenter’s Checklist.’’ Click on the Folder’’ on the right side of the screen. contains notices to the public of the proposed ‘‘Help’’ tab on the Regulations.gov home Comments and supporting materials can issuance of rules and regulations. The page to get information on using be viewed and filtered by clicking on purpose of these notices is to give interested Regulations.gov, including instructions ‘‘View all documents and comments in persons an opportunity to participate in the for submitting public comments. this docket’’ and then using the filtering rule making prior to the adoption of the final rules. Regulations.gov Beta: Go to https:// tools on the left side of the screen. Click beta.regulations.gov/ or click ‘‘Visit on the ‘‘Help’’ tab on the New Regulations.gov Site’’ from the Regulations.gov home page to get DEPARTMENT OF THE TREASURY Regulations.gov Classic homepage. information on using Regulations.gov. Enter ‘‘Docket ID OCC–2020–0037’’ in The docket may be viewed after the Office of the Comptroller of the the Search Box and click ‘‘Search.’’ close of the comment period in the same Currency Public comments can be submitted via manner as during the comment period. the ‘‘Comment’’ box below the Regulations.gov Beta: Go to https:// 12 CFR Parts 21 and 163 displayed document information or by beta.regulations.gov/ or click ‘‘Visit New Regulations.gov Site’’ from the [Docket No. OCC–2020–0037] clicking on the document title and then clicking the ‘‘Comment’’ box on the top- Regulations.gov Classic homepage. RIN 1557–AE77 left side of the screen. For help with Enter ‘‘Docket ID OCC–2020–0037’’ in submitting effective comments please the Search Box and click ‘‘Search.’’ Exemptions to Suspicious Activity click on ‘‘Commenter’s Checklist.’’ For Click on the ‘‘Comments’’ tab. Report Requirements assistance with the Regulations.gov Beta Comments can be viewed and filtered AGENCY: Office of the Comptroller of the site, please call (877) 378–5457 (toll by clicking on the ‘‘Sort By’’ drop-down Currency (OCC), Treasury (USDT). free) or (703) 454–9859 Monday–Friday, on the right side of the screen or the ACTION: Notice of proposed rulemaking 9 a.m.–5 p.m. ET or email regulations@ ‘‘Refine Results’’ options on the left side with request for public comment. erulemakinghelpdesk.com. of the screen. Supporting materials can • Mail: Chief Counsel’s Office, be viewed by clicking on the SUMMARY: The OCC is inviting comment Attention: Comment Processing, Office ‘‘Documents’’ tab and filtered by on a proposed rule that would modify of the Comptroller of the Currency, 400 clicking on the ‘‘Sort By’’ drop-down on the requirements for national banks and 7th Street SW, Suite 3E–218, the right side of the screen or the federal savings associations to file Washington, DC 20219. ‘‘Refine Results’’ options on the left side Suspicious Activity Reports. The • Hand Delivery/Courier: 400 7th of the screen.’’ For assistance with the proposed rule would amend the OCC’s Street SW, Suite 3E–218, Washington, Regulations.gov Beta site, please call Suspicious Activity Report regulations DC 20219. (877) 378–5457 (toll free) or (703) 454– to allow the OCC to issue exemptions Instructions: You must include 9859 Monday–Friday, 9 a.m.–5 p.m. ET from the requirements of those ‘‘OCC’’ as the agency name and ‘‘Docket or email regulations@ regulations. The proposed rule makes it ID OCC–2020–0037’’ in your comment. erulemakinghelpdesk.com. possible for the OCC to grant relief to In general, the OCC will enter all The docket may be viewed after the national banks or federal savings comments received into the docket and close of the comment period in the same associations that develop innovative publish the comments on the manner as during the comment period. solutions intended to meet Bank Regulations.gov website without FOR FURTHER INFORMATION CONTACT: Jim Secrecy Act requirements more change, including any business or Vivenzio, Senior Counsel; Jina Cheon, efficiently and effectively. personal information provided such as Counsel; Henry Barkhausen, Counsel; or DATES: Comments must be received by name and address information, email Scott Burnett, Counsel, Chief Counsel’s February 22, 2021. addresses, or phone numbers. Office (202) 649–5490; Office of the ADDRESSES: Commenters are encouraged Comments received, including Comptroller of the Currency, 400 7th to submit comments through the Federal attachments and other supporting Street SW, Washington, DC 20219. eRulemaking Portal, if possible. Please materials, are part of the public record SUPPLEMENTARY INFORMATION: use the title ‘‘Exemptions to Suspicious and subject to public disclosure. Do not I. Introduction Activity Report Requirements’’ to include any information in your facilitate the organization and comment or supporting materials that OCC regulations require national distribution of the comments. You may you consider confidential or banks and federal savings associations submit comments by any of the inappropriate for public disclosure. to file Suspicious Activity Reports following methods: You may review comments and other (SARs) under certain conditions. These • Federal eRulemaking Portal— related materials that pertain to this regulations also provide for: (i) Board of Regulations.gov Classic or rulemaking action by the following director notification; (ii) filing Regulations.gov Beta: methods: exceptions; (iii) SAR confidentiality; (iv) Regulations.gov Classic: Go to https:// • Viewing Comments Electronically— recordkeeping requirements; (v) www.regulations.gov/. Enter ‘‘Docket ID Regulations.gov Classic or supporting documentation OCC–2020–0037’’ in the Search Box and Regulations.gov Beta: requirements; and (vi) limitations on click ‘‘Search.’’ Click on ‘‘Comment Regulations.gov Classic: Go to https:// liability. Requirements related to SARs Now’’ to submit public comments. For www.regulations.gov/. Enter ‘‘Docket ID are codified at 12 CFR 21.11 for national help with submitting effective OCC–2020–0037’’ in the Search box and banks and 12 CFR 163.180 for federal comments please click on ‘‘View click ‘‘Search.’’ Click on ‘‘Open Docket savings associations. This proposed rule

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would amend those sections to allow requirements of the BSA to, among circumstances (e.g., insider abuse at any the OCC to issue exemptions from the other things, specifically address the dollar amount).8 As previously noted, regulations’ SAR requirements. reporting of money laundering these violations and abuse situations transactions and transactions designed can pose serious threats to financial II. Background to evade the reporting requirements of institutions’ continued viability and, if The OCC has long required its the BSA.5 To further implement this unchecked, can undermine the public regulated institutions to report potential new reporting process and reduce confidence in the nation’s financial violations of law arising from unnecessary reporting burdens, the OCC industry. transactions that flow through those and the other federal banking agencies The OCC and FinCEN SAR institutions.1 The OCC required such contemporaneously amended their regulations also provide: (i) That SARs reporting because fraud, abusive insider criminal referral form regulations to are not required for a robbery or transactions, check-kiting schemes, incorporate the new SAR form and burglary committed or attempted that is money laundering, and other financial reporting database, align their regulatory reported to appropriate law enforcement crimes can pose serious threats to a reporting requirements with FinCEN’s authorities; (ii) that SARs are financial institution’s continued BSA reporting requirements, and further confidential and shall not be disclosed viability and, if unchecked, can refine the reporting processes.6 except as authorized; (iii) recordkeeping undermine the public confidence in the As a result of this redesign and requirements for SARs and supporting nation’s financial system generally.2 FinCEN’s implementing regulations, documentation; (iv) that supporting In 1992 Congress passed the national banks and federal savings documentation shall be deemed to have Annunzio-Wylie Anti-Money associations are currently required to been filed with the SAR; and (v) that Laundering Act, which redesigned the file SARs under both OCC and FinCEN supporting documentation shall be criminal referral process applicable to regulations. These regulations are not made available to appropriate law OCC supervised entities and made the identical but are substantially similar enforcement agencies upon request. The reporting of certain suspicious with regard to the specified BSA regulations also provide a limitation on transactions a requirement of the Bank reporting obligations required by liability to any national bank, federal Secrecy Act (BSA).3 The Act permitted FinCEN. Both the OCC’s and FinCEN’s savings association or other financial the Department of the Treasury to SAR regulations require banks to file institution and any director, officer, require financial institutions, including SARs relating to money laundering, employee, or agent of a national bank or national banks and federal savings transactions that are designed to evade federal savings association or other associations, to ‘‘report any suspicious the reporting requirements of the BSA, financial institution that makes a transaction relevant to a possible and transactions that have no business voluntary disclosure of any possible violation of law or regulation.’’ 4 As a or apparent lawful purpose or are not violation of law or regulation to a result, the Department of the Treasury, the sort in which the particular government agency or files a SAR in consultation with the OCC, the other customer would normally be expected pursuant to the regulations or any other federal banking agencies, and law to engage, and the bank knows of no authority. The OCC’s regulations also enforcement, developed the modern reasonable explanation for the contain a provision requiring that SAR form and reporting process, which transactions after examining the national banks and federal savings standardized the reporting forms and available facts, including the associations promptly notify their board created a centralized database that could background and possible purpose of the of directors when a SAR has been filed. While neither the OCC’s SAR be accessed by multiple law transactions.7 Furthermore, with respect regulations nor FinCEN’s SAR reporting enforcement and regulatory agencies. to the SAR confidentiality requirements regulation contain provisions permitting To implement this new reporting in the BSA, both the OCC’s and exemptions, FinCEN has general system, the Financial Crimes FinCEN’s SAR regulations require banks authority to grant exemptions from the Enforcement Network of the Department to maintain the confidentiality of a SAR requirements of the BSA, which of the Treasury (FinCEN) issued its and any information that would reveal includes granting exemptions under its implementing SAR regulations in 1996 the existence of the SAR, outside of SAR reporting regulations.9 FinCEN’s for financial institutions subject to the certain circumstances. regulation provides that ‘‘[t]he Secretary While the OCC and FinCEN [of Treasury], in his sole discretion, may 1 The OCC first codified this requirement in 1971 regulations contain substantively by written order or authorization make at 12 CFR 7.5225, which required national banks to similar requirements, including submit a report to the OCC, the FBI, the U.S. exceptions to or grant exemptions from requiring reporting in certain common attorney for the bank’s district, and the bank’s the requirements of [the BSA]. Such bonding company consisting of ‘‘any state of facts contexts and requiring institutions to exceptions or exemptions may be growing out of the affairs of the bank known or maintain the confidentiality of SARs, conditional or unconditional, may apply suspected to involve criminal violation of any other the OCC and the other federal banking section of the United States Code.’’ 36 FR 17000, to particular persons or to classes of agencies require reporting in broader 17012 (Aug. 26, 1971). In 1986, the OCC repealed persons, and may apply to transactions 12 CFR 7.5225 and adopted its criminal referral or classes of transactions.’’ 10 The form regulation, 12 CFR 21.11, which required 5 61 FR 4326 (Feb. 5, 1996). Prior to the adoption national banks to report specified suspicious of FinCEN’s SAR regulation in 1996 and the Secretary has delegated this exemption transactions on a standardized criminal referral accompanying revisions to the OCC’s regulation, authority to FinCEN. form. 51 FR 25866 (July 17, 1986). As explained the OCC’s criminal referral regulation did not have This disparity in exemption authority below, the OCC revised 12 CFR 21.11 in the 1990s a specific provision that required the reporting of makes it more difficult for the OCC to to conform to the new SAR reporting form and money laundering transactions. However, the system. criminal referral regulation broadly encompassed grant relief if a national bank or federal 2 54 FR 25839 (June 20, 1989). money laundering and structuring transactions as 3 Public Law 102–550, 106 Stat. 3672 (1992). explained in the Supplementary Information 8 12 CFR 208.62 (Board of Governors of the 4 31 U.S.C. 5318(g)(1). The quoted text is from section to the final rule enhancing the criminal Federal Reserve); 12 CFR 390.353 (Federal Deposit section 1517 of the Annunzio-Wylie Anti-Money referral process. 54 FR 25839, 25840 (June 20, Insurance Corporation); 12 CFR 748.1 (National Laundering Act, which was originally codified at 31 1989). Credit Union Administration). U.S.C. 5314(g). The text was moved as part of the 6 61 FR 4332 (Feb. 5, 1996) (OCC). 9 See 31 U.S.C. 5318(a)(7), with implementing Violent Crime Control and Law Enforcement Act of 7 See 12 CFR 21.11(c)(4); 163.180(d)(3)(iv); 31 regulations at 31 CFR 1010.970. 1994. CFR 1020.320(a)(2). 10 31 CFR 1010.970(a).

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savings association has a novel SAR the OCC may exempt a national bank or their comments before granting any filing proposal that does not squarely fit federal savings association from the exemption. Such exemptions may be within the regulatory requirements but requirements of those sections. conditional or unconditional, may apply would nonetheless be beneficial from an As discussed above, the OCC’s SAR to particular persons or to classes of anti-money laundering regulatory and regulations contains some requirements persons, and may apply to transactions safety and soundness perspective. As that are not included in FinCEN’s SAR or classes of transactions. In addition, financial technology and innovation regulation. For exemption requests the proposed rule provides that the OCC continue to develop in the area of involving these OCC additional SAR may grant an exemption for a specified monitoring and reporting financial requirements, a national bank or federal time period. crime and terrorist financing, the OCC savings association would only need to Under the proposed rule, the OCC will need the express regulatory seek an exemption from the OCC. The could also revoke previously granted flexibility to grant exemptive relief OCC believes that the proposed process exemptions if circumstances change when appropriate in this area on a is consistent with the purposes of the related to the factors set out above (e.g., consistent basis. In 2018 the OCC, the BSA and with safe and sound banking. consistency with the BSA and safety Board of Governors of the Federal For exemption requests from the and soundness) or any imposed Reserve System, the Federal Deposit requirements of the OCC’s SAR conditions. The OCC invites comments Insurance Corporation, FinCEN, and the regulations that would also require an on the proposed rule, including whether National Credit Union Administration exemption from FinCEN’s SAR any additional detail relating to the issued a statement encouraging banks to regulation, for example, exemption procedures that would be followed in take innovative approaches to meet their requests related to SAR filings required considering, granting, or revoking BSA/anti-money laundering (BSA/AML) by 12 CFR 21.11(c)(4), or related to SAR exemptions is necessary. The OCC compliance obligations.11 That timing requirements in 12 CFR 21.11(d), welcomes comments on any aspect of statement explained that banks are or related to SAR confidentiality in 12 the proposed rule, in particular, with encouraged to consider, evaluate, and, CFR 21.11(k), a national bank would regard to whether additional or different where appropriate, responsibly need to seek an exemption from both factors or standards should be applied implement innovative approaches in the OCC and FinCEN. in the determination whether to grant an this area. Today, innovative approaches Under the proposed rule, a national exemption request, as well as the form and technological developments in the bank requesting an exemption from the and manner of the OCC’s response to an areas of SAR monitoring, investigation, requirements of 12 CFR 21.11, including exemption request. and filings may involve, among other exemptions related to SAR filings solely things: (i) Automated form population required by paragraphs (c)(1) through IV. Administrative Law Matters using natural language processing, (3), must submit a request in writing to A. Solicitation of Comments and Use of the OCC. In reviewing such requests, the transaction data, and customer due Plain Language diligence information; (ii) automated or OCC would consider whether the limited investigation processes exemption is consistent with safe and Section 722 of the Gramm-Leach- depending on the complexity and risk of sound banking, and any other Bliley Act 12 requires the federal a particular transaction and appropriate appropriate factors, such as any banking agencies to use plain language safeguards; and (iii) enhanced outstanding supervisory concerns in all proposed and final rules monitoring processes using more and related to BSA/AML, including informal published after January 1, 2000. The better data, optical scanning, artificial and formal enforcement actions. OCC has sought to present the proposed intelligence, or machine learning A national bank or federal savings rule in a simple and straightforward capabilities. Requests for exemptive association requesting an exemption manner, and invite comment on the use relief pertaining to innovation or other from the requirements of the OCC’s SAR of plain language. For example: matters may involve, among other regulations that would also require an • Has the OCC organized the material things, expanded investigations and exemption from FinCEN’s SAR to suit your needs? If not, how could the SAR timing issues, SAR disclosures and regulation, for example, an exemption OCC present the proposed rule more sharing, continued SAR filings for request related to SAR filings under 12 clearly? ongoing activity, outsourcing of SAR CFR 21.11(c)(4) for national banks, • Are the requirements in the processes, the role of agents of national would have to submit a request in proposed rule clearly stated? If not, how banks and federal savings associations, writing to both the OCC and to FinCEN could the proposed rule be more clearly the use of shared utilities and shared for approval. Upon receiving a written stated? data, and the use and sharing of de- request from a national bank or federal • Do the regulations contain technical identified data. OCC expects that new savings association, the OCC would language or jargon that is not clear? If technologies will continue to prompt consider whether the exemption is so, which language requires additional innovative approaches consistent with the purposes of the clarification? related to SAR filing and monitoring. Bank Secrecy Act, with safe and sound • Would a different format (grouping banking, and any other appropriate and order of sections, use of headings, III. The Proposal factors, such as any outstanding paragraphing) make the regulation The proposed rule would allow the supervisory concerns related to BSA/ easier to understand? If so, what OCC to issue exemptions from the AML, including informal and formal changes would achieve that? requirements of its SAR regulations. enforcement actions. With respect to • Would more, but shorter, sections Specifically, the proposed rule would requests for exemption from the be better? If so, which sections should add a provision to 12 CFR 21.11 and 12 requirements of the OCC’s SAR be changed? CFR 163.180 that would provide that regulations that would also require an • What other changes can the OCC exemption from FinCEN’s SAR incorporate to make the regulation 11 Joint Statement on Innovative Efforts to Combat regulation, the requestor would have to easier to understand? Money Laundering and Terrorist Financing (Dec. 3, 2018), available at https://www.occ.gov/news- obtain exemptions from both agencies. issuances/news-releases/2018/nr-occ-2018- The OCC also may notify the other 12 Public Law 106–102, sec. 722, 113 Stat. 1338, 130a.pdf. federal banking agencies and consider 1471 (1999).

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B. Paperwork Reduction Act Analysis collection techniques or other forms of administrative compliance requirements Certain provisions of the proposal information technology; and for new regulations that impose e. Estimates of capital or startup costs contain ‘‘collection of information’’ additional reporting, disclosure, or other and costs of operation, maintenance, requirements within the meaning of the requirements on insured depository and purchase of services to provide Paperwork Reduction Act of 1995 (44 institutions, each federal banking information. agency must consider, consistent with U.S.C. 3501–3521) (PRA). In accordance All comments will become a matter of with the requirements of the PRA, principles of safety and soundness and public record. Comments on aspects of the public interest, any administrative agencies may not conduct or sponsor, this document that may affect reporting, and a respondent is not required to burdens that such regulations would recordkeeping, or disclosure place on insured depository institutions, respond to, an information collection requirements and burden estimates unless it displays a currently valid including small depository institutions, should be sent to the addresses listed in and customers of depository Office of Management and Budget the ADDRESSES section of this document. (OMB) control number. The OCC institutions, as well as the benefits of A copy of the comments may also be 14 reviewed the proposed rulemaking and such regulations. In addition, section submitted to the OMB desk officer for 302(b) of RCDRIA requires new determined that it revises information the agencies by mail to U.S. Office of collection requirements previously regulations and amendments to Management and Budget, 725 17th regulations that impose additional approved by OMB under OMB Control Street NW, #10235, Washington, DC No. 1557–0180. The OCC has submitted reporting, disclosures, or other new 20503; facsimile to (202) 395–6974; or requirements on insured depository the revised information collection to email to [email protected], OMB for review under section 3507(d) institutions generally to take effect on Attention, Federal Banking Board Desk the first day of a calendar quarter that of the PRA (44 U.S.C. 3507(d)) and Officer. § 1320.11 of the OMB’s implementing begins on or after the date on which the regulations (5 CFR part 1320). C. Regulatory Flexibility Act Analysis regulations are published in final form.15 Current Actions. The proposal would The Regulatory Flexibility Act, 5 The OCC requests comment on revise 12 CFR 21.11 and 12 CFR 163.180 U.S.C. 601 et seq., (RFA), requires an any administrative burdens that the to allow national banks and federal agency, in connection with a proposed proposed rule would place on savings associations to submit written rule, to prepare an Initial Regulatory depository institutions, including small requests for exemptions from the Flexibility Analysis describing the depository institutions, and their requirements of the OCC’s SAR impact of the rule on small entities customers, and the benefits of the regulations. The burden estimates below (defined by the SBA for purposes of the proposed rule that the OCC should are based on the estimated number of RFA to include commercial banks and consider in determining the effective banks and savings associations that savings institutions with total date and administrative compliance might request such exemptions each consolidated assets of $600 million or requirements for a final rule year and the estimated number of hours less and trust companies with total E. OCC Unfunded Mandates Reform Act required to submit such a request. consolidated assets of $41.5 million of of 1995 Determination National banks and federal savings less) or to certify that the proposed rule Consistent with the Unfunded associations may submit written would not have a significant economic Mandates Reform Act of 1995 (UMRA), requests for exemptions from the impact on a substantial number of small 2 U.S.C. 1532, the OCC considers requirements of the OCC’s SAR entities. whether the proposed rule includes a regulations. 12 CFR 21.11(m) and As part of our analysis, we consider Federal mandate that may result in the 163.180(f). whether the proposal would have a Title of Information Collection: significant economic impact on a expenditure by state, local, and tribal Minimum Security Devices and substantial number of small entities, governments, in the aggregate, or by the Procedures, Reports of Suspicious pursuant to the RFA. The OCC currently private sector, of $100 million adjusted Activities, and Bank Secrecy Act supervises approximately 745 small for inflation (currently $157 million) in Compliance Program. entities.13 Because the proposal imposes any one year. The proposed rule does Frequency: Event generated. no new mandates, it would have only de not impose new mandates. Therefore, Affected Public: Businesses or other minimis costs to OCC-supervised small the OCC concludes that implementation for-profit. entities. Therefore, the OCC certifies of the proposed rule would not result in Estimated number of respondents: 5. that the proposal would not have a an expenditure of $157 million or more Total estimated annual burden: 250 significant economic impact on a annually by state, local, and tribal hours. substantial number of small entities. governments, or by the private sector. Comments are invited on: D. Riegle Community Development and List of Subjects a. Whether the collections of Regulatory Improvement Act of 1994 information are necessary for the proper 12 CFR Part 21 performance of the agencies’ functions, Pursuant to section 302(a) of the Crime, Currency, National banks, including whether the information has Riegle Community Development and Reporting and recordkeeping practical utility; Regulatory Improvement Act (RCDRIA), requirements, Security measures. b. The accuracy or the estimate of the in determining the effective date and burden of the information collections, 12 CFR Part 163 including the validity of the 13 The OCC calculated the number of small Accounting, Administrative practice entities using the SBA’s size thresholds for methodology and assumptions used; commercial banks and savings institutions, and and procedure, Advertising, Crime, c. Ways to enhance the quality, trust companies, which are $550 million and $38.5 Currency, Investments, Mortgages, utility, and clarity of the information to million, respectively. Consistent with the General Reporting and recordkeeping be collected; Principles of Affiliation, 13 CFR 121.103(a), the requirements, Savings associations. OCC counted the assets of affiliated financial d. Ways to minimize the burden of the institutions when determining whether to classify information collections on respondents, a national bank or federal savings association as a 14 12 U.S.C. 4802(a). including through the use of automated small entity. 15 12 U.S.C. 4802(b).

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Authority and Issuance the OCC. The OCC will consider the (3) The OCC may extend the period of For the reasons stated in the response prior to deciding whether to time or may revoke an exemption SUPPLEMENTARY INFORMATION, the OCC revoke an exemption and will notify the granted under paragraph (f)(1) of this proposes to amend 12 CFR parts 21 and national bank of the OCC’s decision to section. Exemptions may be revoked at 163 as follows: revoke an exemption in writing. the sole discretion of the OCC. The OCC (4) With respect to requests for will provide written notice to the PART 21—MINIMUM SECURITY exemption that will also require an savings association or service DEVICES AND PROCEDURES, exemption from the requirements of corporation of the OCC’s intention to REPORTS OF SUSPICIOUS FinCEN’s SAR regulation, upon revoke an exemption. Such notice will ACTIVITIES, AND BANK SECRECY receiving approval from both the OCC include the basis for the revocation and ACT COMPLIANCE PROGRAM and FinCEN, the requestor shall be will provide an opportunity for the relieved of its obligations under this savings association or service ■ 1. The authority citation for part 21 is section to the extent stated in such corporation to submit a response to the revised to read as follows: approvals. OCC. The OCC will consider the response prior to deciding whether to Authority: 12 U.S.C. 1, 93a, 161, 1462a, PART 163—SAVINGS 1463, 1464, 1818, 1881–1884, and 3401– revoke an exemption and will notify the 3422. ASSOCIATIONS—OPERATIONS savings association or service ■ 2. In § 21.11, add paragraph (m) to ■ 3. The authority citation for part 163 corporation of the OCC’s decision to read as follows: is revised to read as follows: revoke an exemption in writing. (4) With respect to requests for Authority: 12 U.S.C. 161, 1462a, 1463, § 21.11 Suspicious Activity Report. exemption that will also require an 1464, 1467a, 1817, 1820, 1828, 1831o, 3806, * * * * * 5101 et seq., 5412(b)(2)(B); 42 U.S.C. 4106. exemption from the requirements of FinCEN’s SAR regulation, upon (m) Exemptions. (1) The OCC may ■ 2. In § 163.180, add paragraph (f) to receiving approval from both the OCC exempt any national bank from the read as follows: requirements of this section. A national and FinCEN, the requestor shall be bank requesting an exemption must § 163.180 Suspicious Activity Reports and relieved of its obligations under this submit a request in writing to the OCC. other reports and statements. section to the extent stated in such In reviewing such requests, the OCC * * * * * approvals. will consider whether the exemption is (f) Exemptions. (1) The OCC may Brian P. Brooks, consistent with safe and sound banking exempt any savings association or Acting Comptroller of the Currency. and may consider other appropriate service corporation from the [FR Doc. 2021–00034 Filed 1–21–21; 8:45 am] factors. An exemption shall be requirements of this section. A savings applicable only as expressly stated in association or service corporation BILLING CODE 4810–33–P the exemption, may be conditional or requesting an exemption from the unconditional, may apply to particular provisions of this section, must submit persons or to classes of persons, and a request in writing to the OCC. In FEDERAL RESERVE SYSTEM may apply to transactions or classes of reviewing such requests, the OCC will 12 CFR Part 208 transactions. A national bank requesting consider whether the exemption is an exemption that also requires an consistent with safe and sound banking, [Docket No. R–1738] exemption from the requirements of and may consider other appropriate FinCEN’s SAR regulation must submit a factors. An exemption shall be RIN 7100–AG08 request in writing to both the OCC and applicable only as expressly stated in Membership of State Banking FinCEN for approval. In reviewing such the exemption, may be conditional or Institutions in the Federal Reserve requests, the OCC will consider whether unconditional, may apply to particular System; Reports of Suspicious the exemption is consistent with the persons or to classes of persons, and Activities Under Bank Secrecy Act purposes of the Bank Secrecy Act, with may apply to transactions or classes of safe and sound banking, and any other transactions. A federal savings AGENCY: Board of Governors of the appropriate factors. association requesting an exemption Federal Reserve System (Board). (2) The OCC will provide a written that also requires an exemption from the ACTION: Notice of proposed rulemaking response to the national bank that requirements of FinCEN’s SAR with request for public comment. submitted the exemption request. A regulation must submit a request in national bank that has received an writing to both the OCC and FinCEN for SUMMARY: The Board is inviting exemption under paragraph (m)(1) of approval. In reviewing such requests, comment on a proposed rule that would this section may rely on the exemption the OCC will consider whether the modify the requirements to file for a period of time to be communicated exemption is consistent with the Suspicious Activity Reports for state by the OCC in its granting of the purposes of the Bank Secrecy Act, with member banks, Edge and agreement exemption. safe and sound banking, and any other corporations, U.S. offices of foreign (3) The OCC may extend the period of appropriate factors. banking organizations supervised by the time or may revoke an exemption (2) The OCC will provide a written Federal Reserve, and bank holding granted under paragraph (m)(1) of this response to the savings association or companies and their nonbank section. Exemptions may be revoked at service corporation that submitted the subsidiaries. Specifically, the proposed the sole discretion of the OCC. The OCC exemption request. A savings rule would amend the Board’s will provide written notice to the association or service corporation that Suspicious Activity Report regulations national bank of the OCC’s intention to has received an exemption under to provide for the issuance of revoke an exemption. Such notice will paragraph (f)(1) of this section may rely exemptions from the requirements of include the basis for the revocation and on the exemption for a period of time those regulations, in full or in part. The will provide an opportunity for the to be communicated by the OCC in its proposed rule is intended, among other national bank to submit a response to granting of the exemption. things, to facilitate supervised

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institutions in meeting Bank Secrecy Suspicious Activity Reports (SARs) to Treasury, issued its implementing SAR Act requirements more efficiently and report known or suspected violations of regulations in 1996. The regulations effectively, including through U.S. law.1 The proposed rule would require financial institutions subject to development of innovative solutions. amend the Board’s SAR regulations to the requirements of the BSA to, among DATES: Comments must be received by expressly provide for exemptions from other things, specifically address the February 22, 2021. the regulations’ SAR requirements, in reporting of money laundering ADDRESSES: You may submit comments, full or in part and subject to the Board’s transactions and transactions designed identified by Docket No. R–1738 and approval. to evade the reporting requirements of 5 RIN 7100–AG08, by any of the following II. Background the BSA. To further implement this new methods: The Board, along with the other • Agency website: http:// reporting process and reduce federal banking agencies, is charged www.federalreserve.gov. Follow the unnecessary reporting burdens, the with safeguarding the safety and instructions for submitting comments at Board and the other federal banking soundness of its supervised institutions. https://www.federalreserve.gov/apps/ agencies contemporaneously amended Pursuant to its safety-and-soundness their criminal referral form regulations foia/proposedregs.aspx. authority and enabling statutes, the • Email: regs.comments@ to incorporate the new SAR form and Board has long required a member bank, federalreserve.gov. Include docket reporting database, align their regulatory a bank holding company and its number and RIN in the subject line of reporting requirements with FinCEN’s nonbank subsidiaries, an Edge Act or BSA reporting requirements, and further the message. Agreement corporation, or a U.S. branch • Fax: (202) 452–3819 or (202) 452– refine the reporting processes.6 or agency of a foreign bank to refer 3102. potential violations of law arising from As a result of this redesign and • Mail: Ann E. Misback, Secretary, transactions that flow through those FinCEN’s implementing regulations, Board of Governors of the Federal institutions to relevant law enforcement relevant institutions supervised by the Reserve System, 20th Street and authorities, because financial crimes can Board are currently required to file Constitution Avenue NW, Washington, pose serious threats to a financial SARs under both the Board’s and DC 20551. institution’s continued viability and, if FinCEN’s SAR regulations. These All public comments are available unchecked, may undermine the public regulations are not identical but are from the Board’s website at http:// confidence in the financial services substantially similar with regard to the www.federalreserve.gov/generalinfo/ industry.2 specified BSA reporting obligations foia/ProposedRegs.cfm as submitted, In 1992, Congress passed the required by FinCEN, in that they both unless modified for technical reasons or Annunzio-Wylie Anti-Money require banks, among other things, to to remove personally identifiable Laundering Act, which redesigned the file SARs relating to money laundering information at the commenter’s request. criminal referral process applicable to and transactions designed to evade BSA Accordingly, comments will not be Board-supervised entities and made the reporting requirements, as well as edited to remove any identifying or reporting of certain suspicious maintain the confidentiality of a SAR in contact information. Public comments transactions a requirement of the Bank most circumstances. However, the may also be viewed electronically or in Secrecy Act (BSA).3 The Act permitted Board’s SAR regulations cover a slightly paper in Room 146, 1709 New York the Department of the Treasury to broader range of transactions, for Avenue NW, Washington, DC 20006, require financial institutions to ‘‘report example, by requiring SARs to be filed between 9:00 a.m. and 5:00 p.m. on any suspicious transaction relevant to a for any known or suspected instance of weekdays. For security reasons, the possible violation of law or insider abuse in any amount, and Board requires that visitors call (202) regulation.’’ 4 Thereafter, the further requiring the prompt notification 452–3684 to make an appointment to Department of the Treasury, in to the institution’s board of directors inspect comments. consultation with the federal banking when a SAR has been filed. FOR FURTHER INFORMATION CONTACT: agencies and law enforcement, The Secretary of the Treasury has Jason Gonzalez, Assistant General developed the modern SAR form and statutory authority to grant exemptions Counsel, (202) 452–3725, or Bernard reporting process, which standardized from the requirements of the BSA, Kim, Senior Counsel, (202) 452–3083, the reporting forms, eliminated which includes FinCEN’s SAR Legal Division; or Suzanne Williams, duplicate filings, and created a requirements.7 The regulation Deputy Associate Director, (202) 452– centralized database that could be implementing this exemption authority 3513, or Koko Ives, Manager, (202) 973– accessed by multiple law enforcement provides: 8 6163, Division of Supervision and and regulatory agencies. The Secretary [of the Treasury], in his sole Regulation, Board of Governors of the To implement this new reporting discretion, may by written order or Federal Reserve System, 20th Street and system, the Financial Crimes authorization make exceptions to or grant Constitution Avenue NW, Washington, Enforcement Network (FinCEN), a exemptions from the requirements of this DC 20551. Users of Telecommunication bureau of the Department of the chapter. Such exceptions or exemptions may Device for Deaf (TDD) only, call (202) be conditional or unconditional, may apply 263–4869. 1 12 CFR 208.62; 12 CFR 211.5(k); 12 CFR to particular persons or to classes of persons, and may apply to particular transactions or SUPPLEMENTARY INFORMATION: 211.24(f); 12 CFR 225.4(f). See Board, Supervision & Regulation Letter (SR) 10–8, ‘‘Suspicious Activity classes of transactions. They shall, however, I. Introduction Report Filing Requirements for Banking be applicable only as expressly stated in the Organizations Supervised by the Federal Reserve’’ order of authorization, and they shall be Pursuant to the Board’s Regulations (Apr. 27, 2010). revocable in the sole discretion of the H, K, and Y, state member banks, Edge 2 See generally 58 FR 47206 (Sept. 3, 1993) Secretary. and agreement corporations, U.S. offices (codifying the Board’s criminal referral procedures); see also SR 88–9, ‘‘New Criminal Referral Form and of foreign banking organizations Updated Criminal Referral Procedures’’ (Mar. 18, 5 61 FR 4326 (Feb. 5, 1996). supervised by the Federal Reserve, and 1988). 6 61 FR 4338 (Feb. 5, 1996). bank holding companies and their 3 Public Law 102–550, 106 Stat. 3672 (1992). 7 See 31 U.S.C. 5318(a)(7). nonbank subsidiaries must file 4 31 U.S.C. 5318(g)(1). 8 31 CFR 1010.970(a).

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The Secretary of the Treasury has institution is subject to requirements The changes made by the proposed delegated this exemption authority to imposed by both the Board’s and rule would add a new paragraph (l) to FinCEN. The purpose of the Board’s FinCEN’s SAR regulations, the § 208.62 of Regulation H (12 CFR proposed rule, which would largely institution would need to acquire an 208.62), which concerns the SAR filing parallel FinCEN’s general exemptive exemption from both the Board and obligations of member banks. Sections authority, would be to facilitate the FinCEN. The Board expects to 211.5(k) and 211.24(f) of Regulation K Board’s granting of relief to a bank coordinate with FinCEN when handling (12 CFR 211.5(k) and 211.24(f)) and seeking an exemption from the such parallel exemption requests, and § 225.4(f) of Regulation Y (12 CFR requirements of the Board’s SAR accordingly, the Board’s proposed rule 225.4(f)) make § 208.62 of Regulation H regulations. would require FinCEN’s concurrence applicable to Edge and Agreement The decision to grant or deny such an with regard to such exemptions. As corporations, the U.S. branches and exemption would be made from a explained above, however, the Board’s agencies of foreign banks (except a safety-and-soundness and anti-money SAR regulation imposes additional Federal branch or Federal agency or a laundering regulatory perspective. In requirements not included in FinCEN’s state branch that is insured by the particular, the Board’s view is that these regulation. To the extent the supervised Federal Deposit Insurance Corporation), exemptions would facilitate supervised institution is subject to a requirement a representative office of a foreign bank, institutions to meet BSA requirements imposed by the Board’s SAR regulations and bank holding companies and their more efficiently and effectively, alone (and not a parallel FinCEN nonbank subsidiaries, respectively. This including through development of requirement), the proposed rule would means that the changes applicable to innovative solutions. Financial allow the Board to exempt the member banks will also be applicable to technology and innovation continue to institution from that requirement the suspicious activity reporting develop in the area of monitoring and without FinCEN’s concurrence. responsibilities of these other domestic reporting financial crime and terrorist and foreign banking organizations III. The Proposal financing, and the Board recognizes the supervised by the Federal Reserve, increasing importance of regulatory The proposed rule would provide for including bank holding companies, flexibility to such efforts. Recently, the the issuance of exemptions from the Edge corporations, and the U.S. Board, along with the other federal requirements, in full or in part, of the branches and agencies of foreign banks. banking agencies and FinCEN, issued a Board’s SAR regulations. Upon The Board welcomes comments on statement encouraging banks to take receiving a written request from a any aspect of the proposed rule, in innovative approaches to meet their Board-supervised institution, the Board particular, with regard to whether BSA/anti-money laundering (BSA/AML) would determine whether the additional or different factors or 9 compliance obligations. The statement exemption is consistent with safe and standards should be applied in the explained that banks are encouraged to sound banking. The Board would also determination whether to grant an consider, evaluate, and where seek FinCEN’s determination whether exemption request, as well as the form appropriate, responsibly implement the exemption is consistent with the and manner of the Board’s response to innovative approaches in this area. purposes of the BSA, as applicable, an exemption request. Today, innovative approaches and where an exemption request involves an technological developments in the area IV. Administrative Law Matters exemption from the requirements to file of SAR monitoring, investigation, and a SAR required by FinCEN regulations A. Solicitation of Comments and Use of filings may involve, among other things: implementing the BSA. Plain Language (i) Automated form population using natural language processing, transaction The proposed rule would require the Section 722 of the Gramm-Leach- data, and customer due diligence Board to seek FinCEN’s concurrence Bliley Act (Pub. L. 106–102, 113 Stat. information; (ii) automated or limited regarding any exemptions that involve 1338, 1471, 12 U.S.C. 4809) requires the investigation processes depending on SAR provisions relating to potential Federal banking agencies to use plain the complexity and risk of a particular money laundering or violations of the language in all proposed and final rules transaction and appropriate safeguards; BSA or other unusual activity covered published after January 1, 2000. The and (iii) enhanced monitoring processes by FinCEN’s SAR regulation. The Board has sought to present the using more and better data, optical proposed rule would allow the Board to proposed rule in a simple and scanning, artificial intelligence, or consult with FinCEN regarding other straightforward manner, and invites machine learning capabilities. exemption requests. The Board may also comment on the use of plain language. Accordingly, exemptive relief may be consult with the other state and federal B. Paperwork Reduction Act Analysis helpful to foster innovation in this area, banking agencies before granting any as the Board expects that new exemption. Certain provisions of the proposed technologies will continue to prompt An approved exemption under the rule contain ‘‘collections of additional innovative approaches proposed rule may apply to only certain information’’ within the meaning of the related to SAR filing and monitoring. parts of the SAR requirements. It may be Paperwork Reduction Act of 1995 (PRA) It is important to recognize that any conditional or unconditional, may apply (44 U.S.C. 3501–3521). In accordance Board-issued exemptions from its SAR to particular persons or to classes of with the requirements of the PRA, the regulations would not relieve the persons, and may apply to transactions Board may not conduct or sponsor, and supervised institution from the or classes of transactions. In addition, a respondent is not required to respond independent obligation to comply with the proposed rule provides that the to, an information collection unless it FinCEN’s SAR regulations, if applicable. Board may grant an exemption for a displays a currently valid Office of To the extent that the supervised specified time period or extend the time Management and Budget (OMB) control period of a previously granted number. The Board reviewed the 9 Joint Statement on Innovative Efforts to Combat exemption. Finally, the proposed rule proposed rule under the authority Money Laundering and Terrorist Financing (Dec. 3, provides that the Board may, in its sole delegated to the Board by OMB. The 2018), available at https://www.federalreserve.gov/ newsevents/pressreleases/files/ discretion, revoke previously granted proposed rule contains reporting bcreg20181203a1.pdf. exemptions. requirements subject to the PRA. To

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implement these requirements, the Department of the Treasury’s Financial small entities based on size standards of Board is revising the Suspicious Crimes Enforcement Network (FinCEN). the Small Business Administration Activity Report (FR 2230; OMB No. Current actions: The proposed rule (SBA) or to certify that the proposed 7100–0212), would provide for the issuance of rule would not have a significant Comments are invited on: exemptions from the requirements, in economic impact on a substantial a. Whether the collections of full or in part, of the Board’s SAR number of small entities. An initial information are necessary for the proper regulations. In section 208.62(l), upon regulatory flexibility analysis must performance of the agencies’ functions, receiving a written request from a contain (1) a description of the reasons including whether the information has Board-supervised institution, the Board why action by the agency is being practical utility; would determine whether the considered; (2) a succinct statement of b. The accuracy or the estimate of the exemption is consistent with safe and the objectives of, and legal basis for, the burden of the information collections, sound banking. The written request for proposed rule; (3) a description of, and, including the validity of the exemption would be a new reporting where feasible, an estimate of the methodology and assumptions used; requirement under the PRA. The Board number of small entities to which the c. Ways to enhance the quality, estimates that the average hours per proposed rule will apply; (4) a utility, and clarity of the information to response would be 8 hours. description of the projected reporting, be collected; In addition, because FinCEN already recordkeeping, and other compliance d. Ways to minimize the burden of the accounts for the reporting burden for all requirements of the proposed rule, information collections on respondents, respondents (including Board- including an estimate of the classes of including through the use of automated supervised institutions) to file a SAR small entities that will be subject to the collection techniques or other forms of (see OMB Control No. 1506–0065) the requirement and the type of professional information technology; and Board would remove this same skills necessary for preparation of the e. Estimates of capital or startup costs reporting burden from the FR 2230.10 report or record; (5) an identification, to and costs of operation, maintenance, Legal authorization and the extent practicable, of all relevant and purchase of services to provide confidentiality: The FR 2230 is federal rules which may duplicate, information. authorized pursuant to the Federal overlap with, or conflict with the All comments will become a matter of Reserve Act (12 U.S.C. 248(a)(1), 602, proposed rule; and (6) a description of public record. Comments on aspects of and 625), Federal Deposit Insurance Act any significant alternatives to the this notice that may affect reporting, (12 U.S.C. 1818(s)), Bank Holding proposed rule which accomplish its recordkeeping, or disclosure Company Act of 1956 (12 U.S.C. stated objectives. The Board has requirements and burden estimates 1844(c)), and International Banking Act considered the potential impact of the should be sent to the addresses listed in of 1978 (12 U.S.C. 3105(c)(2) and proposed rule on small entities in the ADDRESSES section of this document. 3106(a)). The FR 2230 is mandatory. accordance with section 603 of the A copy of the comments may also be SARs are confidential and exempt RFA.11 Under regulations issued by the submitted to the OMB desk officer for from Freedom of Information Act SBA, a small entity includes a bank, the agencies by mail to U.S. Office of (FOIA) disclosure by 31 U.S.C. 5319, bank holding company, or savings and Management and Budget, 725 17th which specifically provides that SARs loan holding company with assets of Street NW, #10235, Washington, DC ‘‘are exempt from disclosure under $600 million or less and trust 20503; facsimile to (202) 395–5806; or section 552 of title 5’’ and FOIA companies with annual receipts of $41.5 email [email protected], exemption 3 (5 U.S.C. 552(b)(3)) million or less.12 As of March 2020, Attention, Federal Reserve Desk Officer. (matters ‘‘specifically exempted from there were approximately 2,925 small bank holding companies, 132 small Proposed Information Collection disclosure by statute’’). Estimated number of respondents: savings and loan holding companies, Title of information collection: Reporting Section 208.62(l)–3. and 472 small state member banks. As Suspicious Activity Report. Estimated average hours per response: of March 2020, the Board does not Agency form number: FR 2230. Reporting Section 208.62(l)–8. supervise any small trust companies. OMB control number: 7100–0212. Current estimated annual burden Based on its analysis and for the Frequency: On occasion. hours: 439,520. reasons stated below, the Board believes Affected public: Businesses or other Estimated annual burden hours due that this proposed rule will not have a for-profit. to proposed revisions: Exemption significant economic impact on a Respondents: State member banks, request, 24; removal of SAR filing, substantial number of small entities. bank holding companies and their (439,520). Nevertheless, the Board is publishing nonbank subsidiaries, Edge and Proposed estimated annual burden and inviting comment on this initial agreement corporations, and the U.S. hours: 24. regulatory flexibility analysis. A final branches and agencies, representative regulatory flexibility analysis may be offices, and nonbank subsidiaries of C. Regulatory Flexibility Act Analysis conducted after any comments received foreign banks supervised by the Board. The Regulatory Flexibility Act, 5 during the public comment period have Description of information collection: U.S.C. 601 et seq., (RFA), generally been considered. The Board welcomes Certain institutions supervised by the requires an agency, in connection with comment on all aspects of its analysis. Board are required, pursuant to the a proposed rule, to prepare an Initial In particular, the Board requests that Bank Secrecy Act (BSA) and the Board’s Regulatory Flexibility Analysis commenters describe the nature of any regulations, to file a SAR to report describing the impact of the rule on impact on small entities and provide known or suspected violations of federal empirical data to illustrate and support law or a suspicious transaction related 10 Section 208.62(e) encourages respondents to the extent of the impact. to a money laundering activity or a file SARs with state and local law enforcement As discussed above, the purpose of violation of the BSA. Institutions file a agencies. In practice, these agencies have access to the Board’s proposed rule is to facilitate SARs through FinCEN’s database, making it SAR electronically through a secure unnecessary for respondents to file SARs directly network created and maintained by the with these agencies. Therefore, the Board assumes 11 5 U.S.C. 603. administrator of the BSA, the de minimus burden for this requirement. 12 See 13 CFR 121.201.

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the Board’s granting of relief to a bank regulations that impose additional the exemption, may be conditional or seeking relief from the requirements of reporting, disclosures, or other new unconditional, may apply to particular the Board’s SAR regulations, when such requirements on insured depository persons or classes of persons, and may relief would be beneficial from a safety- institutions generally to take effect on apply to transactions or classes of and-soundness and anti-money the first day of a calendar quarter that transactions. laundering regulatory perspective. The begins on or after the date on which the (ii) The Board will seek FinCEN’s proposed rule would be issued pursuant regulations are published in final concurrence with regard to any to the Board’s safety-and-soundness form.14 The proposed rule would not exemption request that would also authority over supervised institutions. impose additional reporting, disclosure, require an exemption from FinCEN’s The proposed rule will apply to small or other requirements; therefore the SAR regulations, and may consult with bank holding companies and their requirements of the RCDRIA do not FinCEN regarding other exemption nonbank subsidiaries and small state apply. requests. The Board also may consult member banks as well as Edge and However, the agencies invite with the other state and federal banking agreement corporations, and U.S. offices comments that further will inform the agencies and consider comments before of foreign banking organizations agencies’ consideration of RCDRIA. granting any exemption. supervised by the Federal Reserve. The (2) The Board will provide a written Board does not expect that the proposal List of Subjects in 12 CFR Part 208 response to the member bank that would impose a significant cost on Accounting, Agriculture, Banks, submitted the exemption request after small banking organizations due to Banking, Confidential business considering whether the exemption is compliance, recordkeeping, and information, Consumer protection, consistent with safe and sound banking, reporting updates from this proposal. Crime, Currency, Federal Reserve consulting with the appropriate The Board does not believe that the System, Flood insurance, Insurance, agencies, and seeking concurrence when proposal would result in any significant Investments, Mortgages, Reporting and appropriate. A member bank that has economic impact on banking recordkeeping requirements, Securities. received an exemption under paragraph organizations as there are no projected (1) of this section may rely on the Authority and Issuance recordkeeping, reporting, or other exemption for a period of time to be compliance requirements associated For the reasons stated in the communicated by the Board in its with the proposal. Moreover, the preamble, the Board of Governors of the granting of the exemption, which may proposal does not impose any new Federal Reserve System proposes to be indefinite. requirements on banking organization, amend 12 CFR part 208 as follows: (3) The Board may extend the period as applying for an exemption under the of time or may revoke an exemption proposal would be entirely voluntary. In PART 208—MEMBERSHIP OF STATE granted under paragraph (1) of this addition, the Board is not aware of any BANKING INSTITUTIONS IN THE section. Exemptions may be revoked at federal rules that duplicate, overlap, or FEDERAL RESERVE SYSTEM the sole discretion of the Board. The conflict with the proposed rule. For (REGULATION H) Board will provide written notice to the member bank of the Board’s intention to these reasons, the Board believes that ■ 1. The authority citation for part 208 revoke an exemption. Such notice will the proposed rule will not have a continues to read as follows: significant economic impact on a include the basis for the revocation and substantial number of small entities Authority: 12 U.S.C. 24, 36, 92a, 93a, will provide an opportunity for the supervised by the Board, and believes 248(a), 248(c), 321–338a, 371d, 461, 481–486, member bank to submit a response to 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12), that there are no significant alternatives the Board. The Board will consider the 1818, 1820(d)(9), 1833(j), 1828(o), 1831, response prior to deciding whether to to the proposed rule that would reduce 1831o, 1831p–1, 1831r–1, 1831w, 1831x, the economic impact on small banking 1835a, 1882, 2901–2907, 3105, 3310, 3331– revoke an exemption, and will notify organizations supervised by the Board. 3351, 3905–3909, 5371, and 5371 note; 15 the member bank of the Board’s final decision to revoke an exemption in D. Riegle Community Development and U.S.C. 78b, 78I(b), 78l(i), 780–4(c)(5), 78q, 78q–1, 78w, 1681s, 1681w, 6801, and 6805; writing. Regulatory Improvement Act of 1994 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, By order of Board of Governors of the Pursuant to section 302(a) of the 4104b, 4106, and 4128. Federal Reserve System. Riegle Community Development and ■ 2. In § 208.62, add a new paragraph (l) Ann Misback, Regulatory Improvement Act (RCDRIA), to read as follows: Secretary of the Board. in determining the effective date and [FR Doc. 2021–00033 Filed 1–21–21; 8:45 am] administrative compliance requirements § 208.62 Suspicious activity reports. BILLING CODE 6210–01–P for new regulations that impose * * * * * additional reporting, disclosure, or other (l) Exemptions. requirements on insured depository (1)(i) The Board may exempt any institutions, each federal banking member bank from the requirements of FEDERAL DEPOSIT INSURANCE agency must consider, consistent with this section. Upon receiving a written CORPORATION principles of safety and soundness and request from a member bank, the Board 12 CFR Part 353 the public interest, any administrative will consider whether the exemption is burdens that such regulations would consistent with safe and sound banking RIN 3064–AF56 place on insured depository institutions, and may consider other appropriate including small depository institutions, factors. The Board also would seek Exemptions to Suspicious Activity and customers of depository FinCEN’s determination whether the Report Requirements institutions, as well as the benefits of exemption is consistent with the AGENCY: Federal Deposit Insurance such regulations.13 In addition, section purposes of the Bank Secrecy Act, if Corporation. 302(b) of RCDRIA requires new applicable. The exemption shall be ACTION: Notice of proposed rulemaking. regulations and amendments to applicable only as expressly stated in SUMMARY: The FDIC is inviting comment 13 12 U.S.C. 4802(a). 14 12 U.S.C. 4802(b). on a proposed rule that would modify

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the requirements for FDIC-supervised Treasury (FinCEN), to FDIC-supervised possible violation of law or institutions to file Suspicious Activity institutions that develop innovative regulation.’’ 3 Thereafter, the Reports (SARs). The proposed rule solutions to meet BSA requirements Department of the Treasury, in would amend the FDIC’s SAR regulation more efficiently and effectively. The consultation with the FDIC, the other to allow the FDIC to issue exemptions FDIC is proposing this rule as a federal banking agencies, and law from the SAR requirements. The proactive measure to address the enforcement, developed the modern proposed rule would make it possible likelihood that FDIC-supervised SAR form and reporting process, which for the FDIC to grant relief to FDIC- institutions will leverage existing or standardized the reporting forms and supervised institutions that develop future technologies to report created a centralized database that could innovative solutions to meet Bank information concerning suspicious be accessed by multiple law Secrecy Act (BSA) requirements more activity in a different manner or time enforcement and regulatory agencies. efficiently and effectively. frame or to share SAR-related To implement this new reporting DATES: Comments are due on or before information. This change would more system, FinCEN implemented its SAR 4 February 22, 2021. Comments on the closely align the FDIC’s regulation with regulation in 1996 for financial Paperwork Reduction Act burden FinCEN’s regulation. FinCEN, unlike the institutions subject to BSA requirements estimates are due on or before March 23, FDIC, has broad statutory authority to to address, among other things, the 2021. issue exemptions from the SAR filing reporting of money laundering requirements. Because the FDIC’s SAR transactions and transactions designed ADDRESSES: You may submit comments, to evade the reporting requirements of identified by RIN 3064–AF56, by any of regulations do not currently contain any provision by which the FDIC can issue the BSA.5 To further implement this the following methods: new reporting process and reduce • FDIC Website: https:// case-by-case exemptions, a situation unnecessary reporting burdens, the www.fdic.gov/regulations/laws/federal/. could arise in which FinCEN grants an FDIC and the other federal banking Follow instructions for submitting exemption from the SAR filing agencies contemporaneously amended comments on the agency website. requirements to an FDIC-supervised • FDIC Email: [email protected]. institution, but the institution would their criminal referral form regulations Include RIN 3064–AF56 on the subject still need to file a SAR if the to incorporate the new SAR form and line of the message. circumstance fell within the FDIC’s SAR reporting database, align their regulatory • Mail: Robert E. Feldman, Executive rule. The proposed rule would allow the reporting requirements with FinCEN’s FDIC to grant exemptions from SAR reporting requirements, and further Secretary, Attention: Comments, Federal 6 Deposit Insurance Corporation, 550 17th filing requirements in conjunction with refine the reporting processes. As a result of this redesign and Street NW, Washington, DC 20429. FinCEN to reduce potential regulatory • Hand Delivery/Courier: Comments burden when a request involves the FinCEN’s implementing regulation, FDIC-supervised institutions are may be hand-delivered to the guard SAR filing requirements of both FinCEN currently required under both FDIC and station at the rear of the 550 17th Street and the FDIC. FinCEN regulations to file SARs. These building (located on F Street) on II. Background regulations are not identical but are business days between 7 a.m. and 5 p.m. The FDIC has long required its Please include your name, affiliation, substantially similar. Both SAR supervised institutions to report address, email address, and telephone regulations require, among other things, potential violations of law arising from FDIC-supervised institutions to file number(s) in your comment. All transactions that flow through those SARs relating to money laundering and statements received, including institutions. From 1986 to 1996, FDIC- transactions that are designed to evade attachments and other supporting supervised institutions filed criminal the reporting requirements of the BSA, materials, are part of the public record referral forms with the FDIC, Federal as well as maintain the confidentiality and are subject to public disclosure. Bureau of Investigation, and the local of a SAR in most circumstances.7 You should submit only information U.S. Attorney’s office.1 The FDIC However, the FDIC’s SAR regulation that you wish to make publicly required reporting through criminal covers a slightly broader range of available. transactions, for example, by requiring Please note: All comments received referral forms to facilitate the reporting SARs to be filed for any known or will be posted generally without change of potential violations to law suspected instance of insider abuse in to http://www.fdic.gov/regulations/laws/ enforcement. In 1992, Congress passed the any amount, and further requiring the federal, including any personal Annunzio-Wylie Anti-Money information provided. Laundering Act, which redesigned the 3 31 U.S.C. 5318(g)(1). The quoted text is from FOR FURTHER INFORMATION CONTACT: Lisa criminal referral process applicable to section 1517 of the Annunzio-Wylie Anti-Money Arquette, Associate Director, (202) 898– FDIC-supervised institutions and made Laundering Act, which was originally codified at 31 8633, [email protected], Division of U.S.C. 5314(g). The text was moved as part of the the reporting of certain suspicious Violent Crime Control and Law Enforcement Act of Risk Management Supervision; John transactions a requirement of the BSA.2 1994. Dorsey, Acting Supervisory Counsel, The Annunzio-Wylie Anti-Money 4 FinCEN is the Administrator of the Bank (202) 898–3807, [email protected], Legal Laundering Act permitted the Secrecy Act. Division; or Constantine Lizas, Counsel, 5 61 FR 4326 (Feb. 5, 1996). Prior to the adoption Department of the Treasury to require of FinCEN’s SAR regulation in 1996 and the (202) 898–6925, [email protected], Legal financial institutions, including FDIC- accompanying revisions to the FDIC’s regulation, Division. supervised institutions, to ‘‘report any the FDIC’s criminal referral regulation had no specific provision requiring the reporting of money SUPPLEMENTARY INFORMATION: suspicious transaction relevant to a laundering transactions. See footnote 1. However, I. Policy Objectives the FDIC’s criminal referral regulation prior to the 1 The FDIC first codified this requirement in 1986 SAR regulation broadly encompassed money The policy objective of the proposed at 12 CFR part 353 (1986), which required FDIC laundering and structuring transactions. See 58 FR rule is to allow the FDIC to grant SAR insured state non-member banks to report 28757, 28772 (May 17, 1993). ‘‘apparent violation[s]’’ of federal criminal law. 51 6 61 FR 6095 (Feb. 16, 1996) (FDIC); 61 FR 6100 filing exemptions, in conjunction with FR 16485, 16486 (May 5, 1986). (Feb. 16, 1996) (OTS); 61 FR 4326 (Feb. 5, 1996) the Financial Crimes Enforcement 2 Public Law 102–550, 106 Stat. 3672 (Oct. 28, (FinCEN). Network of the Department of the 1992). 7 See 12 CFR part 353; 31 CFR 1020.320(a)(2).

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prompt notification to the institution’s data, and customer due diligence the filing of a SAR for potential money board of directors when a SAR has been information; (ii) automated or limited laundering, violations of the BSA, or filed. investigation processes depending on other unusual activity covered by FinCEN has general authority to grant the complexity and risk of a particular FinCEN’s SAR regulation. When a exemptions from the BSA’s transaction and appropriate safeguards; request involves the SAR filing requirements, which includes granting and (iii) enhanced monitoring processes requirements of both FinCEN and the exemptions under its SAR reporting using more and better data, optical FDIC, the proposed rule would require regulation.8 FinCEN’s regulation scanning, artificial intelligence, or the FDIC to seek FinCEN’s concurrence. provides that ‘‘[t]he Secretary [of machine learning capabilities. Requests In addition, the proposed rule provides Treasury], in his sole discretion, may by for exemptive relief pertaining to that the FDIC may grant an exemption written order or authorization make innovation or other matters may for a specified time period. The exceptions to or grant exemptions from involve, among other things, expanded supervised institution would then be the requirements of [the BSA]. Such investigations and SAR timing issues, able to rely on the exemption for a exceptions or exemptions may be SAR disclosures and sharing, continued period of time as determined and conditional or unconditional, may apply SAR filings for ongoing activity, SAR communicated by the FDIC. Under the to particular persons or to classes of outsourcing of responsibilities and proposed rule, the FDIC could also persons, and may apply to transactions practices, the role of agents of FDIC- extend or revoke previously granted or classes of transactions.’’ The supervised institutions, the use of exemptions if circumstances change Secretary of Treasury delegated this shared utilities and shared data, and the related to the factors set out above exemption authority to FinCEN. In use and sharing of de-identified data (consistent with the BSA and safety and contrast, the FDIC’s SAR regulations (commonly referred to as anonymized soundness), or any imposed conditions. contain a discrete set of filing data). The FDIC expects that new exemptions pertaining to physical technologies will continue to prompt A. Part 353.3(d) Exemptions crimes (robberies and burglaries), and additional innovative approaches Section 353.3(d) sets forth exemptions lost, missing, counterfeit, or stolen related to suspicious activity monitoring from the FDIC’s SAR regulation. securities. and SAR filing. Currently, Section 353.3(d)(1) exempts This disparity in exemptions makes it If the FDIC adopts the proposed rule FDIC-supervised institutions from filing more difficult for the FDIC to grant relief and uses it to grant exemptions, the a SAR for a committed or attempted if an FDIC-supervised institution has a exemptions would not relieve FDIC- robbery or burglary that is reported to novel SAR filing proposal that does not supervised institutions from the the appropriate law enforcement squarely fit within the FDIC’s regulatory obligation to comply with FinCEN’s authorities. Section 353.3(d)(2) exempts requirements, but would nonetheless be SAR regulation when applicable. To the an FDIC-supervised institution from consistent with safe and sound banking extent an exemption request from an filing a SAR for lost, missing, and with the BSA. As financial FDIC-supervised institution involves counterfeit, or stolen securities if the technology and innovation continue to both the FDIC’s SAR regulation and institution files a report pursuant to the FinCEN’s SAR regulation, the FDIC- develop in the area of monitoring and reporting requirements of 17 CFR supervised institution would need an reporting financial crime and terrorist 240.17f–1. The proposed rule would exemption from both the FDIC and financing, the FDIC will need the add three paragraphs to § 353.3(d). express regulatory flexibility to grant FinCEN. The FDIC expects to coordinate exemptive relief when appropriate in with FinCEN when handling parallel B. Part 353.3(d)(3) exemptions. As explained above, this area. The proposed paragraph (d)(3) would Moreover, in 2018, the FDIC, the however, the FDIC’s SAR regulation imposes additional requirements not permit the FDIC to exempt any FDIC- Board of Governors of the Federal supervised institution from the Reserve System, the National Credit included in FinCEN’s SAR regulation. To the extent an exemption request is requirements of 12 CFR 353.3. Upon Union Administration, the Office of the receiving a written request from an Comptroller of the Currency, and subject to a requirement imposed by the FDIC’s SAR regulation alone (and not a FDIC-supervised institution, the FDIC FinCEN issued a statement encouraging would determine whether the banks to take innovative approaches to parallel FinCEN requirement), the proposed rule would allow the FDIC to exemption is consistent with safe and meet their BSA/Anti-Money Laundering sound banking. The FDIC would also 9 exempt a supervised institution from compliance obligations. The statement seek FinCEN’s determination whether 10 that requirement. explained that banks are encouraged the exemption is consistent with the to consider, evaluate, and where III. Proposed Regulation Changes purposes of the BSA, as applicable, appropriate, responsibly implement where an exemption request also innovative approaches in this area. The proposed rule would add three paragraphs to 12 CFR 353.3(d) of the requires an exemption from FinCEN’s Today, innovative approaches and SAR regulation. The exemptions may be technological developments in the areas FDIC Rules and Regulations that would permit the FDIC to exempt a supervised conditional or unconditional, may apply of SAR monitoring, investigation, and institution from the requirements, in to particular persons or to classes of filing may involve, among other things: full or in part, of 12 CFR 353.3. Under persons, and may apply to transactions (i) Automated form population using the proposed rule, the FDIC in or classes of transactions. natural language processing, transaction evaluating an exemption request would The proposed paragraph (d)(3) would 8 See 31 U.S.C. 5318(a)(7), with implementing determine whether the request is require the FDIC to seek FinCEN’s regulations at 31 CFR 1010.970. consistent with safe and sound banking, concurrence regarding an exemption 9 See https://www.fdic.gov/news/news/press/ and may consider other appropriate request that also requires an exemption 2018/pr18091a.pdf. factors. The FDIC would also seek from FinCEN’s SAR regulation. The 10 Under the Bank Secrecy Act, the term ‘‘bank’’ FinCEN’s determination whether the proposed paragraph (d)(3) would permit is defined in 31 CFR 1010.100(d) and includes each agent, agency, branch, or office within the United exemption request is consistent with the the FDIC to consult with FinCEN States of banks, savings associations, credit unions, purposes of the BSA, as applicable, regarding other exemption requests. The and foreign banks. where an exemption request involves FDIC may also consult with the other

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state and federal banking agencies existing or future technologies to gather second quarter of 2020 related to before granting any exemption. and submit the information contained in reviewing alerts, and drafting, writing, SARs to the appropriate law submitting, and storing SAR filings and C. Part 353.3(d)(4) enforcement authorities and regulatory documentation, which amounts to The proposed paragraph (d)(4) would agencies in a more efficient and cost annual estimated costs of $15.2 million require that, after the FDIC has received effective manner. This change would for FDIC-supervised institutions in FinCEN’s concurrence and consulted more closely align the FDIC’s aggregate. with appropriate agencies, the FDIC regulations with those of FinCEN, The FDIC estimated the provide a written response to the FDIC- which has broad statutory authority to recordkeeping, reporting, and disclosure supervised institution that submitted issue exemptions from SAR filing costs of filing SARs for each FDIC- the exemption request. An FDIC- requirements. Because the FDIC’s SAR supervised institution in the second supervised institution that has received regulations do not currently contain any quarter of 2020 using data on SAR an exemption under paragraph (d)(3) provision by which the FDIC can issue filings for each institution in may rely on the exemption for a period case-by-case exemptions, a situation combination with FinCEN’s of time to be communicated by the FDIC could arise in which FinCEN grants an methodology for estimating costs in its granting of the exemption, which exemption from SAR filing associated with SAR filings.14 The may be indefinite. requirements to an FDIC-supervised annualized estimated recordkeeping, institution that has developed D. Part 353.3(d)(5) reporting, and disclosure costs of filing innovative methods for meeting SAR SARs in the second quarter of 2020 do The proposed paragraph (d)(5) would filing requirements, but the institution not represent more than 1.9 percent of permit the FDIC to revoke or extend the would still need to file a SAR. The annual non-interest expense for any period of time for an exemption granted proposed rule would allow the FDIC to FDIC-supervised institution. under paragraph (d)(3). Under the grant exemptions from SAR filing Additionally, only one FDIC-supervised proposed paragraph (d)(5), the FDIC requirements in conjunction with institution incurred estimated would have discretion to revoke FinCEN to reduce potential regulatory annualized recordkeeping, reporting, exemptions. The proposed paragraph burden. and disclosure costs associated with (d)(5) would require the FDIC to provide The FDIC does not have the ability to SAR filing that amounted to more than written notice to the FDIC-supervised forecast the number of requests for 5 percent of annual wage and salary institution of the FDIC’s intention to exemptions that FDIC-supervised expense with the costs equaling 5.2 revoke an exemption. The proposed institutions will file as a result of this percent.15 Therefore, the economic paragraph (d)(5) would require the rule, or the number of requests that the benefit of this proposed rule on FDIC- written notice to include the basis for FDIC will grant. The proposed rule is supervised institutions is likely to be the revocation and provide the FDIC- likely to pose some increase in relatively small. Further, this proposed supervised institution an opportunity to compliance costs associated with rule would only allow the FDIC to grant respond. The proposed paragraph (d)(5) submitting an exemption request to the exemptions in instances where safety would require the FDIC to consider the FDIC, however the FDIC believes that and soundness and Bank Secrecy Act institution’s response before deciding to the costs are likely to be small. The regulatory requirements would not be revoke an exemption. The proposed FDIC expects this proposed rule will compromised, so the proposed rule is paragraph (d)(5) would require the FDIC result in cost savings for FDIC- also not expected to have any broader to notify, in writing, the FDIC- supervised institutions that obtain negative economic impacts. supervised institution of the FDIC’s exemptions from SAR filing The FDIC invites comments on all final decision to revoke an exemption. requirements. However, the cost savings aspects of this analysis. In particular, are projected to be relatively modest. IV. Summary would the proposed rule have any costs For example, using the methodology for or benefits to covered entities that the If the proposal is finalized, 12 CFR calculating the cost associated with FDIC has not identified? 353.3(d) would be amended to add filing SARs that FinCEN published in paragraphs (d)(3) through (5), and May 2020,12 the FDIC estimates that VI. Alternatives would apply to all FDIC-supervised FDIC-supervised institutions incurred The FDIC has considered alternatives institutions. These initiatives would roughly $3.8 million 13 in costs in the to the proposed rule but believes that permit the FDIC to grant SAR the proposed amendments represent the exemptions to FDIC-supervised 12 See 85 FR 31598 (May 26, 2020). most appropriate option for covered institutions to promote innovation, 13 This estimate uses the May 2019 75th institutions. As discussed earlier, reduce burden, and meet BSA percentile hourly wage rate for Financial Managers ($73.48), Compliance Officers ($43.70), Financial requirements more efficiently and Clerks ($18.20), and Tellers ($17.49) reported by the percentage of SARs that contain extended content effectively. Bureau of Labor Statistics, National Industry- matches what FinCEN reported in its recent Specific Occupational Employment, and Wage estimates of the costs associated with SAR filing V. Expected Effects Estimates. These wage rates have been adjusted for requirements (85 FR 31598). changes in the Consumer Price Index for all Urban 14 FDIC analysts queried data on SAR filings by As explained previously, the Consumers between May 2019 and June 2020 (0.67 institution from a SAR database that FinCEN makes proposed rule would amend 12 CFR percent) and grossed up by 51 percent to account available to regulators and law enforcement 353.3(d) to add paragraphs (d)(3) for non-monetary compensation as reported by the agencies. through (5), and would apply to all June 2020 Employer Costs for Employee 15 This estimate uses FinCEN data on the SAR Compensation Data. The mix of professions varies filings of each FDIC-supervised institution, in FDIC-supervised institutions. As of June depending on the task associated with filing SARs combination with FinCEN’s methodology for 30, 2020, the FDIC supervised 3,270 including reviewing alerts, documenting reasons estimating costs associated with SAR filings, to institutions.11 The proposal would why some alerts do not merit a SAR filing, drafting, estimate the SAR-related costs that each FDIC- permit the FDIC to grant relief to FDIC- writing, and submitting SARs, and storing SARs supervised institution incurred in the second and supporting documentation. For this calculation quarter of 2020. That estimate is then multiplied by supervised institutions that leverage the FDIC assumed that the mix of professions four, and compared to each institution’s previous involved in each task, the percentage of SAR alerts four quarters of merger-adjusted noninterest 11 FDIC-supervised institutions are set forth in 12 that result in a SAR filing, and the percentage of expense and wages and salary expense reported in U.S.C. 1813(q)(2). SARs that are batch filed or filed discretely, and the Call Report filings from September 2019–June 2020.

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FinCEN has statutory authority to grant Frequency of Response: On Occasion. impact of the proposed rule on small relief from SAR filing requirements to Affected Public: Businesses or other entities.16 However, a regulatory FDIC-supervised institutions, and this for-profit. flexibility analysis is not required if the proposed rule would amend the FDIC’s Respondents: Any FDIC-supervised agency certifies that the rule will not regulations so that the FDIC may issue institution wishing to obtain an have a significant economic impact on exemptions to SAR filing requirements exemption from the Suspicious Activity a substantial number of small entities, in conjunction with FinCEN. This Report requirements. and publishes its certification and a change could reduce regulatory burden Estimated Number of Annual short explanatory statement in the for FDIC-supervised institutions by Respondents: 3. Federal Register together with the rule. allowing institutions that develop Estimated Burden per Response: 8 The Small Business Administration innovative techniques for meeting BSA hours. (SBA) has defined ‘‘small entities’’ to requirements to obtain exemptions from Total estimated annual burden: 24 include banking organizations with total SAR filing requirements. The FDIC hours. assets of less than or equal to $600 To derive these estimates, the FDIC considered maintaining its regulations million.17 Generally, the FDIC considers assumed that the FDIC-supervised in their current form, but chose not to a significant effect to be a quantified institutions that file the most SARs will do so because the FDIC believes that effect in excess of 5 percent of total be the most likely to request exemptions doing so would be unnecessarily annual salaries and benefits per from SAR filing requirements. There are burdensome and may discourage institution, or 2.5 percent of total ten FDIC-supervised institutions that institutions from developing innovative noninterest expenses. The FDIC believes filed 1,000 or more SARs in the second approaches to meeting BSA that effects in excess of these thresholds quarter of 2020. The FDIC expects requirements. typically represent significant effects for roughly one-third of those institutions FDIC-supervised institutions. For the VII. Request for Comments to request an exemption per year, so the reasons provided below, the FDIC The FDIC invites comments on all FDIC expects 3 annual respondents to certifies that the proposed rule would aspects of this proposed rulemaking. In this information collection. The FDIC not have a significant economic impact particular, the FDIC requests comments estimates the hourly burden of an on a substantial number of small on the following questions: exemption request to be 8 hours. banking organizations. Accordingly, a Question 1. The FDIC invites Comments are invited on: (a) Whether regulatory flexibility analysis is not comments on the proposed exemptions the collection of information is required. to 12 CFR 353.3. necessary for the proper performance of As of June 30, 2020, the FDIC Question 2. The FDIC invites the FDIC’s functions, including whether supervised 3,270 institutions,18 of comments on whether any additional the information has practical utility; (b) which 2,492 are considered small detail relating to the procedures that the accuracy of the estimates of the entities for the purposes of RFA.19 Using would be followed in considering, burden of the information collection, the methodology for calculating the cost granting, or revoking exemptions are including the validity of the associated with filing SARs that FinCEN necessary. methodology and assumptions used; (c) published in May 2020,20 the FDIC Written comments must be received ways to enhance the quality, utility, and estimates that small FDIC-supervised by the FDIC no later than February 22, clarity of the information to be institutions incurred $460,565.08 21 in 2021. collected; (d) ways to minimize the burden of the information collection on 16 5 U.S.C. 601, et seq. VIII. Administrative Law Matters respondents, including through the use 17 The SBA defines a small banking organization A. The Paperwork Reduction Act of automated collection techniques or as having $600 million or less in assets, where ‘‘a other forms of information technology; financial institution’s assets are determined by Certain provisions of the proposed averaging the assets reported on its four quarterly and (e) estimates of capital or start-up financial statements for the preceding year.’’ See 13 rule contain ‘‘collection of information’’ costs and costs of operation, CFR 121.201 (as amended by 84 FR 34261, effective requirements within the meaning of the maintenance, and purchase of services August 19, 2019). ‘‘SBA counts the receipts, Paperwork Reduction Act (PRA) of 1995 to provide information. employees, or other measure of size of the concern (44 U.S.C. 3501–3521). In accordance All comments will become a matter of whose size is at issue and all of its domestic and foreign affiliates.’’ See 13 CFR 121.103. Following with the requirements of the PRA, the public record. Comments on aspects of these regulations, the FDIC uses a covered entity’s FDIC may not conduct or sponsor, and this notice that may affect reporting or affiliated and acquired assets, averaged over the the respondent is not required to recordkeeping requirements and burden preceding four quarters, to determine whether the respond to, an information collection estimates should be sent to the FDIC-supervised institution is ‘‘small’’ for the unless it displays a currently valid purposes of RFA. addresses listed in the ADDRESSES 18 FDIC-supervised institutions are set forth in 12 Office of Management and Budget section of this preamble. A copy of the U.S.C. 1813(q)(2). (OMB) control number. The information comments may also be submitted to the 19 Call Report data, March 2020. collection requirements contained in FDIC OMB desk officer by mail to U.S. 20 See 85 FR 31598. this notice of proposed rulemaking have Office of Management and Budget, 725 21 This estimate uses the May 2019 75th been submitted to OMB for review and 17th Street NW, #10235, Washington, percentile hourly wage rate for Financial Managers ($73.48), Compliance Officers ($43.70), Financial approval by FDIC under section 3507(d) DC 20503 or by facsimile to 202–395– Clerks ($18.20), and Tellers ($17.49) reported by the of the PRA and § 1320.11 of OMB’s 5806, Attention, Federal Banking Bureau of Labor Statistics, National Industry- implementing regulations (5 CFR part Agency Desk Officer. Specific Occupational Employment, and Wage 1320) as a new information collection. Estimates. These wage rates have been adjusted for B. The Regulatory Flexibility Act changes in the Consumer Price Index for all Urban The proposed rule contains voluntary Consumers between May 2019 and June 2020 (0.67 reporting requirements, or exemption The Regulatory Flexibility Act (RFA), percent) and grossed up by 51 percent to account requests, in 12 CFR 353.3(d)(3). requires that, in connection with a for non-monetary compensation as reported by the Title of Proposed Information notice of proposed rulemaking, an June 2020 Employer Costs for Employee Compensation Data. The mix of professions varies Collection: Exemptions to Suspicious agency prepare and make available for depending on the task associated with filing SARs Activity Report Requirements. public comment an initial regulatory including reviewing alerts, documenting reasons OMB Control Number: 3064—[NEW]. flexibility analysis that describes the why some alerts do not merit a SAR filing, drafting,

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costs in the second quarter of 2020 requirements would not be impose additional reporting, disclosure, related to reviewing alerts, documenting compromised, so the proposed rule is or other requirements on insured the reasons why certain alerts do not also not expected to have any broader depository institutions (IDIs), each merit a SAR filing, and drafting, writing, negative economic impacts. federal banking agency must consider, submitting, and storing SAR filings and Based on the information above, the consistent with principles of safety and documentation, which amounts to FDIC certifies that the rule would not soundness and the public interest, any annual estimated costs of $1,842,260.32 have a significant economic impact on administrative burdens that the for small FDIC-supervised institutions a substantial number of small entities. regulations would place on depository in aggregate. The FDIC invites comments on all institutions, including small depository The FDIC estimated costs of filing aspects of the supporting information institutions, and customers of SARs for each FDIC-supervised provided in this section, and in depository institutions, as well as the institution in the second quarter of 2020 particular, whether the proposed rule benefits of the regulations. In addition, using data on SAR filings for each would have any significant effects on section 302(b) of RCDRIA requires new institution in combination with small entities that the FDIC has not regulations and amendments to FinCEN’s methodology for estimating identified. regulations that impose additional 22 costs associated with SAR filings. The C. Plain Language reporting, disclosures, or other new annualized estimated recordkeeping, requirements on IDIs generally to take reporting, and disclosure costs of filing Section 722 of the Gramm-Leach- 24 effect on the first day of a calendar SARs in the second quarter of 2020 do Bliley Act requires the federal quarter that begins on or after the date not represent more than 1.9 percent of banking agencies to use plain language on which the regulations are published in all proposed and final rules annual non-interest expense for any in final form.28 The FDIC invites published after January 1, 2000. The small FDIC-supervised institution. comments that further will inform its FDIC has sought to present the proposed Additionally, only one small FDIC- consideration of RCDRIA. supervised institution incurred rule in a simple and straightforward estimated annualized costs associated manner. The FDIC invites comments on List of Subjects in 12 CFR Part 353 with SAR filing that amounted to more whether the proposal is clearly stated Banks, banking, Crime, Reporting and than 5 percent of annual wage and and effectively organized, and how the recordkeeping requirements. FDIC might make the proposal easier to salary expense with the costs equaling Authority and Issuance 5.2 percent.23 While the total estimated understand. costs of filing SARs represent a D. The Economic Growth and For the reasons stated in the significant expense for one FDIC- Regulatory Paperwork Reduction Act preamble, the Federal Deposit Insurance supervised small entity, the costs do not Corporation proposes to amend 12 CFR Under section 2222 of the Economic part 353 as follows: represent a significant amount for all Growth and Regulatory Paperwork other FDIC-supervised small entities. Reduction Act of 1996 (EGRPRA), the PART 353—SUSPICIOUS ACTIVITY Thus, the cost savings from this FDIC is required to review all of its REPORTS proposal for all other FDIC-supervised regulations, at least once every 10 years, small entities will likely not be in order to identify any outdated or ■ 1. The authority citation for part 353 significant. In addition, the cost savings otherwise unnecessary regulations continues to read as follows: from receiving a SAR exemption would 25 imposed on insured institutions. The Authority: 12 U.S.C. 1818, 1819; 31 U.S.C. be at least partially offset by the costs FDIC, along with the other federal 5318. associated with requesting an banking agencies, submitted a Joint ■ exemption and the costs associated with Report to Congress on March 21, 2017 2. Revise § 353.3 paragraph (d) to read developing a method for meeting SAR (EGRPRA Report) discussing how the as follows: requirements. Further, this proposed review was conducted, what has been § 353.3 Reports and records. rule would only allow the FDIC to grant done to date to address regulatory * * * * * exemptions in instances where safety burden, and further measures the FDIC and soundness and BSA regulatory (d) Exemptions. (1) An FDIC- will take to address issues that were supervised institution need not file a identified.26 By providing the ability to writing, and submitting SARs, and storing SARs suspicious activity report for a robbery issue exemptions and reduce burdens or burglary committed or attempted, and supporting documentation. For this calculation on FDIC-supervised institutions, this the FDIC assumed that the mix of professions that is reported to appropriate law involved in each task, the percentage of SAR alerts rule complements other actions that the enforcement authorities. that result in a SAR filing, and the percentage of FDIC has taken, separately and with the (2) An FDIC-supervised institution SARs that are batch filed or filed discretely, and the other federal banking agencies, to need not file a suspicious activity report percentage of SARs that contain extended content further the EGRPRA mandate. matches what FinCEN reported in its recent for lost, missing, counterfeit, or stolen estimates of the costs associated with SAR filing E. Riegle Community Development and securities if it files a report pursuant to requirements (85 FR 31598). the reporting requirements of 17 CFR 22 Regulatory Improvement Act of 1994 FDIC analysts queried data on SAR filings by 240.17f–1. institution from a SAR database that FinCEN makes Pursuant to section 302(a) of the (3) The FDIC may exempt any FDIC- available to regulators and law enforcement Riegle Community Development and agencies. supervised institution from the Regulatory Improvement Act 23 This estimate uses FinCEN data on the SAR requirements of this section. Upon (RCDRIA),27 in determining the effective filings of each FDIC-supervised institution, in receiving a written request from an combination with FinCEN’s methodology for date and administrative compliance FDIC-supervised institution, the FDIC estimating costs associated with SAR filings, to requirements for new regulations that estimate the SAR-related costs that each FDIC- will determine whether the exemption supervised institution incurred in the second is consistent with safe and sound 24 Public Law 106–102, section 722, 113 Stat. quarter of 2020. That estimate is then multiplied by banking and may consider other four, and compared to each institution’s previous 1338, 1471 (1999). four quarters of merger-adjusted noninterest 25 Public Law 104–208, 110 Stat. 3009 (1996). appropriate factors. The FDIC will also expense and wages and salary expense reported in 26 82 FR 15900 (March 31, 2017). Call Report filings from June 2019 to March 2020. 27 12 U.S.C. 4802(a). 28 Id.

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seek FinCEN’s determination whether NATIONAL CREDIT UNION Attorney, Damon P. Frank, Staff the exemption is consistent with the ADMINISTRATION Attorney, and Chrisanthy J. Loizos, purposes of the BSA, if applicable. The Senior Staff Attorney, Office of General exemption shall be applicable only as 12 CFR Part 748 Counsel, (703) 518–6540; or by mail at expressly stated in the exemption, may RIN 3133–AF25 National Credit Union Administration, be conditional or unconditional, may 1775 Duke Street, Alexandria, VA apply to particular persons or to classes Bank Secrecy Act 22314. of persons, and may apply to SUPPLEMENTARY INFORMATION: AGENCY: National Credit Union transactions or classes of transactions. Administration (NCUA). I. Introduction The FDIC will seek FinCEN’s ACTION: Proposed rule. Requirements related to SARs are concurrence with regard to any codified in 12 CFR 748.1(c). This exemption request that also requires an SUMMARY: The NCUA Board (Board) is section of the NCUA’s regulations exemption from FinCEN’s SAR inviting comment on a proposed rule requires FICUs to file SARs under regulation, and may consult with that would modify the requirements for certain conditions. In addition, this FinCEN regarding other exemption federally insured credit unions (FICUs) section provides for: (i) Board of requests. The FDIC also may consult to file Suspicious Activity Reports director or other committee notification; with the other state and federal banking (SARs). The proposed rule would (ii) filing exceptions; (iii) SAR agencies before granting any exemption. amend the NCUA’s SARs regulation to confidentiality; (iv) recordkeeping allow the Board to issue exemptions (4) The FDIC will provide a written requirements; (v) supporting from the requirements of that regulation documentation requirements; and (vi) response to the FDIC-supervised in order to grant relief to FICUs that institution that submitted the exemption limitations on liability. The proposed develop innovative solutions to meet rule would allow the NCUA to issue request after considering whether the the requirements of the Bank Secrecy exemption is consistent with safe and exemptions from the regulation’s SAR Act (BSA). requirements. sound banking, consulting with the DATES: Comments must be received by appropriate agencies, and seeking February 22, 2021. II. Background concurrence when appropriate. An ADDRESSES: You may submit written The NCUA’s original SARs regulation FDIC-supervised institution that has comments, identified by RIN 3133– required FICUs to report potential received an exemption under paragraph AF25, by any of the following methods violations of law arising from (d)(3) of this section may rely on the (Please send comments by one method transactions that flow through those exemption for a period of time to be only): institutions.1 As discussed in more communicated by the FDIC in its • Federal eRulemaking Portal: http:// detail later in this document, this granting of the exemption, which may www.regulations.gov. Follow the regulation has been amended and be indefinite. instructions for submitting comments. updated since its inception. The (5) The FDIC may extend the period • Fax: (703) 518–6319. Include NCUA’s purpose for the regulation has, of time or may revoke an exemption ‘‘[Your Name]—Comments on Proposed however, remained unchanged because granted under paragraph (d)(3) of this Rule: Bank Secrecy Act’’ in the fraud, abusive insider transactions, check-kiting schemes, money section. Exemptions may be revoked at transmittal. • laundering, and other financial crimes the sole discretion of the FDIC. The Mail: Address to Melane Conyers- can pose serious threats to a financial FDIC will provide written notice to the Ausbrooks, Secretary of the Board, National Credit Union Administration, institution’s continued viability and, if FDIC-supervised institution of the unchecked, can undermine the public FDIC’s intention to revoke an 1775 Duke Street, Alexandria, Virginia 22314–3428. confidence in the nation’s financial exemption. The notice will include the • Hand Delivery/Courier: Same as services industry generally.2 basis for the revocation and will provide mail address. In 1992, Congress passed the an opportunity for the FDIC-supervised Public Inspection: You may view all Annunzio-Wylie Anti-Money institution to submit a response to the public comments on the Federal Laundering Act (the Anti-Money FDIC. The FDIC will consider the eRulemaking Portal at http:// Laundering Act), which redesigned the response prior to deciding whether or www.regulations.gov as submitted, criminal referral process applicable to not to revoke an exemption, and will except for those we cannot post for credit unions and made the reporting of notify the FDIC-supervised institution of technical reasons. The NCUA will not certain suspicious transactions a the FDIC’s final decision to revoke an edit or remove any identifying or requirement of the BSA.3 The Anti- exemption in writing. contact information from the public Money Laundering Act permitted the * * * * * comments submitted. Due to social Department of the Treasury to require distancing measures in effect, the usual financial institutions, including credit Federal Deposit Insurance Corporation. opportunity to inspect paper copies of unions, to ‘‘report any suspicious By order of the Board of Directors. comments in the NCUA’s law library is transaction relevant to a possible Dated at Washington, DC, on December 15, not currently available. After social violation of law or regulation.’’ 4 2020. distancing measures are relaxed, visitors 1 James P. Sheesley, may make an appointment to review See 50 FR 53294–01 (Dec. 31, 1985). 2 paper copies by calling (703) 518–6540 58 FR 5663 (Jan. 22, 1993). Assistant Executive Secretary. 3 Public Law 102–550, 106 Stat. 3672, 4059 [FR Doc. 2021–00037 Filed 1–21–21; 8:45 am] or emailing [email protected]. (1992). 4 BILLING CODE 6714–01–P FOR FURTHER INFORMATION CONTACT: 31 U.S.C. 5318(g)(1). The quoted text is from Policy and Analysis: Timothy Segerson, section 1517 of the Annunzio-Wylie Anti-Money Laundering Act, which was originally codified at 31 Deputy Director, Office of Examination U.S.C. 5314(g). The text was moved as part of the and Insurance, (703) 518–6397; Violent Crime Control and Law Enforcement Act of Legal:Justin Anderson, Senior Staff 1994.

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Thereafter, the Department of the information that would reveal the relief when appropriate in this area on Treasury, in consultation with the existence of the SAR, outside of certain a consistent basis. In 2018, the NCUA, NCUA, the other federal banking circumstances.9 FinCEN, and the other federal banking agencies,5 and law enforcement However, the NCUA’s and the other agencies issued a statement encouraging developed the modern SAR form and federal banking agencies’ regulations financial institutions to take innovative reporting process, which standardized cover a slightly broader range of approaches to meet their BSA/anti- the reporting forms and created a transactions (e.g., insider abuse at any money laundering (BSA/AML) centralized database that could be dollar amount).10 compliance obligations.13 That accessed by multiple law enforcement The NCUA and FinCEN SAR statement explained that financial and regulatory agencies. regulations also provide: (i) That SARs institutions are encouraged to consider, To implement this new reporting are not required for a robbery or evaluate, and where appropriate, system, in 1996, the Financial Crimes burglary committed or attempted that is responsibly implement innovative Enforcement Network of the Department reported to appropriate law enforcement approaches in this area. Today, of the Treasury (FinCEN) issued its authorities; (ii) that SARs are innovative approaches and implementing SAR regulations for confidential and shall not be disclosed technological developments in the areas financial institutions subject to the except as authorized; (iii) recordkeeping of SAR monitoring, investigation and requirements of the BSA to, among requirements for SARs and supporting filings may involve, among other things: other things, specifically address the documentation; (iv) that supporting (i) Automated form population using reporting of money laundering documentation shall be deemed to have natural language processing, transaction transactions and transactions designed been filed with the SAR; and (v) that data, and customer due diligence to evade the reporting requirements of supporting documentation shall be information; (ii) automated or limited the BSA.6 To further implement this made available to appropriate law investigation processes depending on new reporting process and reduce enforcement agencies upon request. The the complexity and risk of a particular unnecessary reporting burdens, the NCUA and FinCEN SAR regulations transaction and appropriate safeguards; NCUA and the other federal banking also provide a safe harbor from liability and (iii) enhanced monitoring processes agencies contemporaneously amended to any FICU and any of its officials, using more and better data, optical their criminal referral form regulations employees, or agents that make a scanning, artificial intelligence, or to incorporate the new SAR form and voluntary disclosure of any possible machine learning capabilities. Requests reporting database, align their regulatory violation of law or regulation to a for exemptive relief pertaining to reporting requirements with FinCEN’s government agency or file a SAR innovation or other matters may BSA reporting requirements, and further pursuant to the regulations or any other involve, among other things, expanded refine the reporting processes.7 authority. The NCUA’s regulation also investigations and SAR timing issues, As a result of this redesign and contains a provision requiring that SAR disclosures and sharing, continued FinCEN’s implementing regulations, FICUs promptly notify their board of SAR filings for ongoing activity, SAR FICUs are currently required to file directors or committee designated by outsourcing of responsibilities and SARs under both NCUA and FinCEN the board of directors to receive such practices, the role of agents of FICUs, regulations. These regulations are not notifications when a SAR has been filed. the use of shared utilities and shared identical but are substantially similar FinCEN has general authority to grant data, and the use and sharing of de- with regard to the specified BSA exemptions from the requirements of identified data. The NCUA expects that reporting obligations required by the BSA, which includes granting new technologies will continue to FinCEN. Both the NCUA’s and FinCEN’s exemptions under its SAR reporting prompt additional innovative SAR regulations, among other things, regulations.11 FinCEN’s regulation approaches related to SAR filing and require FICUs to file SARs relating to provides that ‘‘[t]he Secretary [of monitoring. money laundering and transactions that Treasury], in his sole discretion, may by It is important to recognize that any are designed to evade the reporting written order or authorization make NCUA-issued exemptions from its SAR requirements of the BSA 8 Furthermore, exceptions to or grant exemptions from regulation would not relieve the FICU with respect to the SAR confidentiality the requirements of [the BSA]. Such from independent obligation to comply requirements in the BSA, both the exemptions may be conditional or with FinCEN’s SAR regulations, if NCUA’s and FinCEN’s SAR regulations unconditional, may apply to particular applicable. To the extent an exemption require FICUs to maintain the persons or to classes of persons, and request from a FICU involves both the confidentiality of a SAR, and any may apply to transactions or classes of NCUA’s SAR regulation and FinCEN’s transactions.’’ The Secretary has SAR regulation, the FICU would need 5 For purposes of this rulemaking, the other delegated this exemption authority to an exemption from both the NCUA and federal banking agencies are defined as the Board FinCEN.12 FinCEN. The NCUA expects to of Governors of the Federal Reserve (FRB), the As financial technology and coordinate with FinCEN when handling Federal Deposit Insurance Corporation (FDIC), and innovation continue to develop in the parallel exemptions. As explained the Office of the Comptroller of the Currency (OCC). above, however, the NCUA’s SAR 6 61 FR 4326 (Feb. 5, 1996) (FinCEN). The area of monitoring and reporting NCUA’s current regulation is codified at 12 CFR financial crime and terrorist financing, regulation imposes additional 748.1(c)(1)(iv)(B). It should be noted that prior to the NCUA will need the express requirements not included in FinCEN’s the adoption of FinCEN’s SAR regulation in 1996 regulatory flexibility to grant exemptive SAR regulation. To the extent an and the accompanying revisions to the NCUA’s exemption request is subject to a regulation, the NCUA’s criminal referral regulation did not have a specific provision that required the 9 12 CFR 748.1(c)(5) (NCUA); 31 CFR requirement imposed by the NCUA’s reporting of money laundering transactions. 1020.320(e)(1) (FinCEN). SAR regulation alone (and not a parallel However, the required criminal referral form 10 12 CFR 748.1(c) (NCUA); 12 CFR 208.62 (FRB); broadly encompassed money laundering and 12 CFR 390.355 (FDIC); 12 CFR 21.11, 163.80 13 Joint Statement on Innovative Efforts to Combat structuring transactions. (OCC). Money Laundering and Terrorist Financing (Dec. 3, 7 61 FR 11526 (Mar. 21, 1996) (NCUA); 61 FR 11 See 31 U.S.C. 5318(a)(7), with implementing 2018), available at https://www.ncua.gov/ 4326 (Feb. 5, 1996) (FinCEN). regulations at 31 CFR 1010.970. newsroom/press-release/2018/agencies-issue-joint- 8 12 CFR 748.1(c)(1)(iv)(B) (NCUA); 31 CFR 12 Treas. Order 180–01, (re-affirmed Jan. 14, statement-encourage-innovative-approaches- 1020.320(a)(2) (FinCEN). 2020). bsaaml-compliance.

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FinCEN requirement), the proposed rule comment period because the proposed referred to as an information collection. would allow the NCUA to exempt a rule is limited in scope, and the Board The NCUA may not conduct or sponsor, FICU from that requirement. believes that 30 days will provide the and the respondent is not required to public adequate time to review and respond to, an information collection III. The Proposal comment on it.14 unless it displays a currently valid This proposed rule would allow the The Board invites comments on the Office of Management and Budget NCUA to issue exemptions from the proposed rule, including whether any (OMB) control number. requirements of its SAR regulation. additional detail relating to the This proposed rule adds a provision Specifically, the proposed rule would procedures that would be followed in to § 748.1(c) that would allow FICUs to add a provision to 12 CFR 748.1 that considering, granting or revoking submit a written request to NCUA if it would provide that the NCUA may exemptions is necessary. The Board is wishes to seek an exemption from the exempt a FICU from the requirements of also specifically requesting comments requirements of this section. There are that section. Under the proposed rule, on whether additional or different 2,932 FICUs that currently file SARs the NCUA would determine whether the factors or standards should be applied annually. It is estimated that 50 of these exemption is consistent with the in the determination whether to grant an FICUs would file for an exemption purposes of the BSA, if applicable, and exemption request, as well as the form under the proposed new § 748.1(c)(7); with safe and sound practices, and may and manner of the Board’s response to taking 2 hours per response, for a total consider other appropriate factors. The an exemption request. increase of 100 burden hours. This NCUA would also seek FinCEN’s IV. Regulatory Procedures proposed rule would revise the determination on whether the information collection requirement exemption would be consistent with the Regulatory Flexibility Act currently approved under OMB number purposes of the BSA. The exemptions The Regulatory Flexibility Act (RFA) 3133–0094, as follows: may be conditional or unconditional, generally requires that, in connection Title of Information Collection: may apply to particular persons or to with a notice of proposed rulemaking, Suspicious Activity Report by classes of persons, and may apply to an agency prepare and make available Depository Institutions. transactions or classes of transactions. for public comment an initial regulatory OMB Control Number: 3133–0094. In addition, this proposal would flexibility analysis that describes the Estimated Number of Respondents: require the NCUA to seek FinCEN’s impact of a proposed rule on small 2,932. concurrence regarding any exemption entities (defined for purposes of the Estimated Annual Frequency of requests that involve an exemption from RFA to include credit unions with Response: 65. the requirement to file a SAR required assets less than $100 million).15 A Estimated Total Annual Reponses: by FinCEN regulations implementing regulatory flexibility analysis is not 191,069. the BSA. The proposal would also Estimated Hours per Response: 1. required, however, if the agency permit the NCUA to consult with Estimated Total Annual Burden certifies that the rule will not have a FinCEN regarding other exemption Hours: 191,119. significant economic impact on a requests. The NCUA may also consult Affected Public: Private Sector: Not- substantial number of small entities and with the other state and federal banking for-profit institutions. publishes its certification and a short, The NCUA invites comments on: (a) agencies before granting any exemption. explanatory statement in the Federal Finally, the proposed rule provides Whether the collections of information Register together with the rule. are necessary for the proper that the NCUA may grant an exemption The proposed rule would allow FICUs performance of the agencies’ functions, for a specified time period. Under the to request exemptions from certain including whether the information has proposed rule, the NCUA could also regulatory requirements if they choose practical utility; (b) the accuracy of the revoke previously granted exemptions if to do so. As a result, it would not cause estimates of the burden of the circumstances change related to the any increased burden or impose any information collections, including the factors set out above (consistency with new requirements on FICUs. validity of the methodology and the BSA and safety and soundness) or Accordingly, the NCUA certifies that the assumptions used; (c) ways to enhance any imposed conditions. proposed rule would not have a If the NCUA adopts this proposed rule the quality, utility, and clarity of the significant economic impact on a and uses it to grant exemptions, such information to be collected; (d) ways to substantial number of small credit exemptions would not relieve a FICU minimize the burden of the information unions. from the obligation to comply with collections on respondents, including FinCEN’s SAR regulation, if applicable. Paperwork Reduction Act through the use of automated collection To the extent a FICU is subject to The Paperwork Reduction Act of 1995 techniques or other forms of information requirements imposed by both the (PRA) applies to information collection technology; and (e) estimates of capital NCUA’s SAR regulation and FinCEN’s requirements in which an agency or start-up costs and costs of operation, SAR regulation, the FICU would need to creates a new paperwork burden on maintenance, and purchase of services seek an exemption from both the NCUA regulated entities or modifies an to provide information. and FinCEN. As explained above, existing burden. For purposes of the All comments are a matter of public however, the NCUA’s SAR regulation PRA, a paperwork burden may take the record. Due to the limited in-house staff, imposes additional requirements not form of a reporting, recordkeeping, or email comments are preferred. included in FinCEN’s regulation. To the third-party disclosure requirement, each Comments regarding the information extent a FICU is subject to a requirement collection requirements of this rule imposed by the NCUA’s SAR regulation 14 See NCUA Interpretive Ruling and Policy should be (1) emailed to: alone (and not a parallel FinCEN Statement (IRPS) 87–2, as amended by IRPS 03–2 [email protected] with ‘‘OMB requirement), the proposed rule would and IRPS 15–1. 80 FR 57512 (Sept. 24, 2015), No. 3133–0094’’ in the subject line; allow the NCUA to exempt a FICU from available at https://www.ncua.gov/files/ faxed to 703–837–2406, or mailed to publications/irps/IRPS1987-2.pdf. Mackie Malaka, NCUA PRA Clearance that requirement. 15 See NCUA Interpretive Ruling and Policy The Board is providing for a 30-day Statement 87–2, as amended by IRPS 03–2 and IRPS Officer, National Credit Union comment period instead of a 60-day 15–1, 80 FR 57512 (Sept. 24, 2015). Administration, 1775 Duke Street, Suite

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5080, Alexandria, Virginia 22314 and to (c) Suspicious Activity Report. * * * ENVIRONMENTAL PROTECTION the (2) Office of Information and (7) Exemptions. AGENCY Regulatory Affairs, Office of Management and Budget, at (i) The NCUA may exempt any 40 CFR Part 52 www.reginfo.gov/public/do/PRAMain. federally insured credit union from the requirements of paragraph (c) of this [EPA–R04–OAR–2020–0102; FRL–10018– Select ‘‘Currently under 30-day 62–Region 4] Review—Open for Public Comments’’ or section. Upon receiving a written by using the search function. request from a federally insured credit Air Plan Approval; KY; Gasoline union, the NCUA will determine Loading Facilities at Existing Bulk Executive Order 13132 whether the exemption is consistent Terminals and New Bulk Plants Executive Order 13132 encourages with safe and sound practices, and may independent regulatory agencies to consider other appropriate factors. The AGENCY: Environmental Protection consider the impact of their actions on NCUA will also seek FinCEN’s Agency (EPA). state and local interests. In adherence to determination whether the exemption is ACTION: Proposed rule. fundamental federalism principles, the consistent with the purposes of the SUMMARY: The Environmental Protection NCUA, an independent regulatory BSA, if applicable. The exemption shall Agency (EPA) is proposing to approve agency as defined in 44 U.S.C. 3502(5), be applicable only as expressly stated in revisions to the Jefferson County portion voluntarily complies with the principles the exemption, may be conditional or of the Kentucky State Implementation of the executive order. This rulemaking unconditional, may apply to particular Plan (SIP), submitted by the will not have a substantial direct effect persons or to classes of persons, and Commonwealth of Kentucky, through on the states, on the connection between may apply to transactions or classes of the Energy and Environment Cabinet the national government and the states, transactions. The NCUA will seek (Cabinet) on September 5, 2019. The or on the distribution of power and FinCEN’s concurrence with regard to revisions were submitted by the Cabinet responsibilities among the various any exemption request that would also on behalf of the Louisville Metro Air levels of government. The NCUA has require an exemption from the Pollution Control District (District) and determined that this proposal does not requirements of FinCEN’s SAR include amendments related to the constitute a policy that has federalism regulations, and may consult with standards for existing gasoline loading implications for purposes of the FinCEN regarding other exemption facilities at bulk terminals and new executive order. requests. The NCUA also may consult gasoline loading facilities at bulk plants. Assessment of Federal Regulations and with the other state and federal banking The amendments to these standards Policies on Families agencies and consider comments before replace a requirement for gasoline tank granting any exemption. trucks to possess a valid Kentucky The NCUA has determined that this pressure vacuum test sticker with a (ii) The NCUA will provide a written proposed rule will not affect family requirement for specific vapor tightness response to the federally insured credit well-being within the meaning of testing and recordkeeping procedures, section 654 of the Treasury and General union that submitted the exemption clarify rule applicability, and remove Government Appropriations Act, 1999, request after considering whether the language stating that a pressure Public Law 105–277, 112 Stat. 2681 exemption is consistent with safe and measuring device will be supplied by (1998). sound banking, consulting with the the District. EPA is proposing to appropriate agencies, and seeking List of Subjects in 12 CFR Part 748 approve the revisions because they are concurrence when appropriate. A consistent with the Clean Air Act (CAA Security program, report of suspected federally insured credit union that has or Act). crimes, suspicious transactions, received an exemption under paragraph DATES: Comments must be received on catastrophic acts and Bank Secrecy Act (i) of this section may rely on the or before February 22, 2021. compliance. exemption for a period of time to be ADDRESSES: Submit your comments, communicated by the NCUA in its By the National Credit Union identified by Docket ID No. EPA–R04– Administration Board on December 17, 2020. granting of the exemption, which may OAR–2020–0102 at Melane Conyers-Ausbrooks, indefinite. The NCUA may extend the www.regulations.gov. Follow the online Secretary of the Board. period of time or may revoke an instructions for submitting comments. exemption granted under paragraph (i) For the reasons discussed in the Once submitted, comments cannot be of this section. Exemptions may be preamble, the Board proposes to amend edited or removed from Regulations.gov. 12 CFR part 748, as follows: revoked at the sole discretion of the EPA may publish any comment received NCUA. The NCUA will provide written to its public docket. Do not submit PART 748—SECURITY PROGRAM, notice to the federally insured credit electronically any information you REPORT OF SUSPECTED CRIMES, union of the NCUA’s intention to revoke consider to be Confidential Business SUSPICIOUS TRANSACTIONS, an exemption. Such notice will include Information (CBI) or other information CATASTROPHIC ACTS AND BANK the basis for the revocation and will whose disclosure is restricted by statute. SECRECY ACT COMPLIANCE provide an opportunity for the federally Multimedia submissions (audio, video, insured credit union to submit a etc.) must be accompanied by a written ■ 1. The authority citation for part 748 response to the NCUA. The NCUA will comment. The written comment is continues to read as follows: consider the credit union’s response considered the official comment and Authority: 12 U.S.C. 1766(a), 1786(q); 15 prior to deciding whether to revoke an should include discussion of all points U.S.C. 6801–6809; 31 U.S.C. 5311 and 5318. exemption and will notify the federally you wish to make. EPA will generally ■ 2. Amend § 748.1 by adding new insured credit union of the NCUA’s not consider comments or comment paragraph (c)(7) to read as follows: decision to revoke an exemption in contents located outside of the primary writing. submission (i.e., on the web, cloud, or § 748.1 Filing of reports. [FR Doc. 2021–00048 Filed 1–21–21; 8:45 am] other file sharing system). For * * * * * BILLING CODE 7535–01–P additional submission methods, the full

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EPA public comment policy, Regulation 7.21 delete the text of an affected facility to have this vapor information about CBI or multimedia subsection 3.6.4 and subsection 3.11.1, tightness test completed annually and to submissions, and general guidance on respectively, which provide that no maintain all testing records (i.e., test making effective comments, please visit owner or operator of a bulk gasoline data, date of testing, identification of www2.epa.gov/dockets/commenting- terminal or plant subject to these tank truck, type of repair, retest data and epa-dockets. regulations may allow a tank truck or date) for two years after the date of FOR FURTHER INFORMATION CONTACT: trailer to be loaded with gasoline unless testing, and to make such records Sarah LaRocca, Air Regulatory the vehicle has ‘‘a valid Kentucky available upon request by the District. Management Section, Air Planning and pressure-vacuum test sticker as required EPA notes that the District’s revised Implementation Branch, Air and by Regulation 6.37 attached and visibly tank truck vapor tightness standards, Radiation Division, U.S. Environmental displayed.’’ 2 This requirement is testing procedures and recordkeeping Protection Agency, Region 4, 61 Forsyth replaced with specific procedures for requirements as proposed for Street SW, Atlanta, 30303–8960. assuring that tank trucks and their incorporation into the SIP are consistent The telephone number is (404) 562– associated vapor collection systems with the Commonwealth of Kentucky’s 8994. Ms. LaRocca can also be reached have passed the required vapor requirements at 401 KAR 63:031, Leaks via electronic mail at larocca.sarah@ tightness test on an annual basis. New from gasoline tank trucks, and also with epa.gov. subsection 3.6.4.1 of Regulation 6.21 EPA’s requirements applicable to gasoline cargo tanks under 40 CFR part SUPPLEMENTARY INFORMATION: and subsection 3.11.1.1 of Regulation 7.20 state that no owner or operator of 60, subpart XX, Standards of I. EPA’s Proposed Action an existing bulk gasoline terminal or a Performance for Bulk Gasoline EPA is proposing to approve changes new bulk gasoline plant shall allow Terminals (see 40 CFR 60.505(b)) and 40 to Regulation 6.21, Standard of loading unless the gasoline tank truck CFR part 63, subpart BBBBBB, National Performance for Existing Gasoline and its vapor collection system has Emission Standards for Hazardous Air Loading Facilities at Bulk Terminals, demonstrated a pressure change within Pollutants for Source Category: Gasoline and Regulation 7.20, Standard of specific parameters. The parameters to Distribution Bulk Terminals, Bulk Performance for New Gasoline Loading be met are a pressure change of no more Plants, and Pipeline Facilities (see 40 Facilities at Bulk Plants, of the Jefferson than 75 millimeter (mm) water (3 inches CFR 63.11092(f)(1) and 63.11094(b)). County portion of the Kentucky SIP, water) in five minutes when pressurized The revisions also include minor submitted by the Commonwealth of to 450 mm water (18 inches water) and changes Regulation 6.21 and Regulation Kentucky on September 5, 2019. The when evacuated to 150 mm water (6 7.20. A non-substantive change to amendments replace the requirement for inches water) using the test procedure Section 1 of Regulation 6.21 clarifies tank trucks being loaded at bulk described in the regulation. that the rule applies to each affected terminals and plants to possess a valid The SIP revision also adds a new facility that was either existing or had Kentucky pressure vacuum sticker with subsection 3.6.4.2 of Regulation 6.21 a construction permit issued on or 4 specific vapor tightness testing and and a new subsection 3.11.1.2 of before June 13, 1979. The non- recordkeeping requirements and make Regulation 7.20 to specify the testing substantive changes to Regulation 7.20 minor, non-substantive changes as procedures that must be used to assure clarify that the rule applies to each discussed in section II. The SIP compliance with the new vapor affected facility which commenced revisions update the current SIP- tightness requirements described above. construction, modification, or 5 approved versions of Regulation 6.21 As proposed for incorporation into the reconstruction after June 13, 1979; (Version 2) and Regulation 7.20 (Version SIP, these subsections require that EPA remove language in subsection 3.11.3 2) to Version 3. Method 27, ‘‘Determination of Vapor such that a pressure measuring device is no longer required to be supplied by the II. EPA’s Analysis of the Revisions Tightness of Gasoline Delivery Tank Using Pressure Vacuum Test,’’ as District; and renumber subsections The District’s September 5, 2019, SIP specified in 40 CFR 60, Appendix A, on within Section 3. revision includes changes to Regulation July 1, 1991, shall be used to determine Because these rule revisions will not 6.21 and Regulation 7.20 related to compliance with subsection 3.6.4.1 of increase air pollutant emissions, EPA standards for existing gasoline loading Regulation 6.21 and subsection 3.11.1.1 proposes to determine that, in accordance with CAA section 110(l), facilities at bulk terminals and of Regulation 7.20.3 The new that they will not interfere with standards for new gasoline loading subsections also require the owner or attainment or maintenance of the facilities at bulk plants, respectively, as operator of a tank truck being loaded at described below. The District notes that NAAQS, reasonable further progress it enacted these regulations to control 2 The District has no record of ever having created toward attainment of the NAAQS, or volatile organic compound emissions ‘‘Regulation 6.37’’ (see email from Byron Gary, any other applicable requirement of the from gasoline loading facilities and that Louisville Air Pollution Control District, to Sarah CAA. EPA has preliminarily determined LaRocca, EPA Region 4, March 23, 2020), and the that these changes are consistent with Regulations Parts 6 and 7 apply more Jefferson County portion of the Kentucky SIP does stringent standards to a broader cross- not contain ‘‘Regulation 6.37.’’ The District’s the CAA is therefore proposing to section of sources than the federal New September 5, 2019, revisions rectify this Source Performance Standards (NSPS).1 discrepancy by removing the references to the non- 4 The SIP-approved version of the rule states that The District has revised Regulation existent ‘‘Regulation 6.37’’ and adding new it applies to ‘‘each affected facility which was in provisions (at subsection 3.6.4 for Regulation 6.21 being or had a construction permit issued by the 6.21 and Regulation 7.20 to discontinue and subsection 3.11.1 for Regulation 7.20) District before June 13, 1979.’’ ‘‘Affected facility’’ is the practice of requiring gasoline containing detailed, updated procedures that defined in Section 2.1 of the rule as ‘‘facilities at transport vehicles to display a Kentucky explicitly state the vapor tightness and a bulk gasoline terminal for loading gasoline into pressure vacuum sticker. Specifically, recordkeeping requirements. tank trucks, trailers, railroad tank cars, or other 3 EPA is not acting on the phrase ‘‘or an alternate mobile, non-marine vessels.’’ the revisions to Regulation 6.20 and procedure approved by the District’’ in the District’s 5 The SIP-approved version of the rule states that new subsection 3.6.4.2 of Regulation 6.21 and it applies to ‘‘each new affected facility which is 1 40 CFR part 60, subpart XX is the federal NSPS subsection 3.11.1.2 of Regulation 7.20. The District commenced after the June 13, 1979.’’ ‘‘Affected containing standards of performance for bulk intends to withdraw this phrase from the submitted facility’’ is defined in Section 2.1 of the rule as ‘‘a gasoline terminals. SIP revision. bulk gasoline plant.’’

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approve these portions of the SIP • Is not a significant regulatory action Dated: December 11, 2020. revisions. subject to review by the Office of Mary Walker, Management and Budget under III. Incorporation by Reference Regional Administrator, Region 4. Executive Orders 12866 (58 FR 51735, [FR Doc. 2021–00533 Filed 1–21–21; 8:45 am] In this document, EPA is proposing to October 4, 1993) and 13563 (76 FR 3821, BILLING CODE 6560–50–P include in a final EPA rule regulatory January 21, 2011); text that includes incorporation by • Is not an Executive Order 13771 (82 reference. In accordance with FR 9339, February 2, 2017) regulatory ENVIRONMENTAL PROTECTION requirements of 1 CFR 51.5, EPA is action because SIP approvals are AGENCY proposing to incorporate by reference exempted under Executive Order 12866; 40 CFR Part 52 Louisville Metro Air Pollution Control • Does not impose an information District Regulation 6.21, Standard of collection burden under the provisions Performance for Existing Gasoline of the Paperwork Reduction Act (44 [EPA–R01–OAR–2020–0327; FRL–10018– 02-Region 1] Loading Facilities at Bulk Terminals, U.S.C. 3501 et seq.); Version 3, and Regulation 7.20, • Is certified as not having a Standard of Performance for New Air Plan Approval; Maine; significant economic impact on a Gasoline Loading Facilities at Bulk Infrastructure State Implementation substantial number of small entities Plants, Version 3, state-effective June Plan Requirements for the 2015 Ozone under the Regulatory Flexibility Act (5 19, 2019, with the exception of the Standard and Negative Declaration for U.S.C. 601 et seq.); phrase ‘‘or an alternate procedure the Oil and Gas Industry for the 2008 • approved by the District’’ in Regulation Does not contain any unfunded and 2015 Ozone Standards mandate or significantly or uniquely 6.21, subsection 3.6.4.2 and Regulation AGENCY: Environmental Protection affect small governments, as described 7.20, subsection 3.11.1.2. The changes Agency (EPA). in the Unfunded Mandates Reform Act to these rules replace a requirement for ACTION: Proposed rule. gasoline tank trucks to possess valid of 1955 (Pub. L. 104–4); • pressure vacuum test sticker with a Does not have Federalism SUMMARY: The Environmental Protection requirement for specific vapor tightness implications as specified in the Agency (EPA) is proposing to approve a testing and recordkeeping procedures, Executive Order 13132 (64 FR 43255, State Implementation Plan (SIP) clarify rule applicability, and remove August 10, 1999); revision submitted by the State of language stating that a pressure • Is not an economically significant Maine. This revision addresses the measuring device will be supplied by regulatory action based on health or infrastructure requirements of the Clean the District. EPA has made, and will safety risks subject to Executive Order Air Act (CAA or Act) for the 2015 ozone continue to make, these materials 13045 (62 FR 19885, April 23, 1997); National Ambient Air Quality Standards generally available through • Is not a significant regulatory action (NAAQS). Today’s proposed action www.regulations.gov and at the EPA subject to Executive Order 13211 (66 FR includes all elements of these Region 4 office (please contact the 28355, May 22, 2001); infrastructure requirements except for person identified in the FOR FURTHER • Is not subject to requirements of the ‘‘Good Neighbor’’ or ‘‘transport’’ INFORMATION CONTACT section of this Section 12(d) of the national provisions, which will be addressed in preamble for more information). Technology Transfer and Advancement a future action. The infrastructure IV. Proposed Action Act of 1995 (15 U.S.C. 272 note) because requirements are designed to ensure that application of those requirements would the structural components of each EPA is proposing to approve the be inconsistent with the CAA; and state’s air quality management program revisions to the Jefferson County portion • are adequate to meet the state’s of the Kentucky SIP (Regulation 6.21, Does not provide EPA with the responsibilities under the CAA. Standard of Performance for Existing discretionary authority to address, as EPA is also proposing to approve Gasoline Loading Facilities at Bulk appropriate, disproportionate human State of Maine submittals of Terminals, Version 3, and Regulation health or environmental effects, using amendments to Chapter 110, Ambient 7.20, Standard of Performance for New practicable and legally permissible Air Quality Standards, and of statutory Gasoline Loading Facilities at Bulk methods, under Executive Order 12898 conflict-of-interest provisions in 38 Plants, Version 3), submitted on (59 FR 7629, February 16, 1994). The Maine Revised Statutes Annotated September 5, 2019, as discussed above. SIP is not approved to apply on any (MRSA) Section 341–A and 341–C. Indian reservation land or any other These two submittals support the state’s V. Statutory and Executive Order area where EPA or an Indian tribe has Reviews infrastructure submittal for the 2015 demonstrated that a tribe has ozone NAAQS. Under the CAA, the Administrator is jurisdiction. In those areas of Indian In addition, we are proposing to required to approve a SIP submission country, the rule does not have tribal convert previous conditional approvals that complies with the provisions of the implications as specified by Executive of the sub-element of section Act and applicable Federal regulations. Order 13175 (65 FR 67249, November 9, 110(a)(2)(E) that addresses State Board See 42 U.S.C. 7410(k); 40 CFR 52.02(a). 2000), nor will it impose substantial Requirements in Maine’s infrastructure Thus, in reviewing SIP submissions, direct costs on tribal governments or SIPs for the 2008 ozone; 2008 lead (Pb); preempt tribal law. EPA’s role is to approve state choices, 2010 nitrogen dioxide (NO2); 2010 provided that they meet the criteria of List of Subjects in 40 CFR Part 52 sulfur dioxide (SO2); 1997, 2006, and the CAA. This action merely proposes to 2012 fine particle (PM2.5) NAAQS to full approve state law as meeting Federal Environmental protection, Air approvals. We are also proposing to requirements and does not impose pollution control, Incorporation by convert to full approval previous additional requirements beyond those reference, Ozone, Volatile organic conditional approvals of section imposed by state law. For that reason, compounds. 110(a)(2)(A) (Emission limits and other this proposed action: Authority: 42 U.S.C. 7401 et seq. control measures) in Maine’s

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infrastructure SIPS for the 1997 and EPA Region 1, 5 Post Office Square— requirements of section 110(a)(2).2 On 2006 PM2.5. Suite 100, (Mail code 05–2), Boston, MA February 14, 2020, the Maine Finally, EPA is proposing to approve 02109–3912, tel. (617) 918–1684, email Department of Environmental Protection SIP revisions submitted by Maine that [email protected]. (Maine DEP) submitted a revision to the provide the state’s determination, via a SUPPLEMENTARY INFORMATION: Maine State Implementation Plan (SIP). negative declaration for the 2008 and Throughout this document whenever The SIP revision addresses the 2015 ozone standards, that there are no ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean infrastructure requirements of CAA facilities within its borders subject to EPA. sections 110(a)(1) and 110(a)(2) for the EPA’s 2016 Control Technique 2015 ozone NAAQS. Guideline (CTG) for the oil and gas Table of Contents Maine’s Negative declaration for the industry. I. Background and Purpose Oil and Natural Gas Industry for the This action is being taken under the A. What is the scope of this rulemaking? 2008 and 2015 ozone standards. Clean Air Act. B. What guidance did EPA use to evaluate On October 27, 2016, EPA published DATES: Written comments must be Maine’s Infrastructure SIP for the 2015 in the Federal Register the ‘‘Final received on or before February 22, 2021. ozone standard? Control Techniques Guidelines for the II. EPA’s Evaluation of Maine’s Infrastructure Oil and Natural Gas Industry.’’ See 81 ADDRESSES: Submit your comments, SIP for the 2015 Ozone Standard identified by Docket ID No. EPA–R01– FR 74798. The CTG provided A. Section 110(a)(2)(A)—Emission Limits information to state, local, and tribal air OAR–2020–0327 at https:// and Other Control Measures www.regulations.gov, or via email to B. Section 110(a)(2)(B)—Ambient Air agencies to assist them in determining [email protected]. For comments Quality Monitoring/Data System reasonably available control technology submitted at Regulations.gov, follow the C. Section 110(a)(2)(C)—Program for (RACT) for volatile organic compound online instructions for submitting Enforcement of Control Measures and for (VOC) emissions from select oil and Construction or Modification of natural gas industry emission sources. comments. Once submitted, comments Stationary Sources cannot be edited or removed from CAA section 182(b)(2)(A) requires that, D. Section 110(a)(2)(D)—Interstate for ozone nonattainment areas classified Regulations.gov. For either manner of Transport as Moderate or above, states must revise submission, the EPA may publish any E. Section 110(a)(2)(E)—Adequate their SIPs to include provisions to comment received to its public docket. Resources implement RACT for each category of Do not submit electronically any F. Section 110(a)(2)(F)—Stationary Source VOC sources covered by a CTG information you consider to be Monitoring System document. CAA section 184(b)(1)(B) Confidential Business Information (CBI) G. Section 110(a)(2)(G)—Emergency Powers extends the RACT obligation to all areas or other information whose disclosure is H. Section 110(a)(2)(H)—Future SIP of states within the Ozone Transport restricted by statute. Multimedia Revisions Region (OTR). Pursuant to CAA section submissions (audio, video, etc.) must be I. Section 110(a)(2)(I)—Nonattainment Area 184(a), Maine is a member state of the accompanied by a written comment. Plan or Plan Revisions Under Part D OTR. States subject to RACT The written comment is considered the J. Section 110(a)(2)(J)—Consultation With requirements are required to adopt Government Officials; Public official comment and should include controls that are at least as stringent as discussion of all points you wish to Notifications; Prevention of Significant Deterioration; Visibility Protection those found in the CTG either by make. The EPA will generally not adopting regulations or issuing single- consider comments or comment K. Section 110(a)(2)(K)—Air Quality Modeling/Data source Orders or Permits that outline contents located outside of the primary L. Section 110(a)(2)(L)—Permitting Fees what the source is required to do to submission (i.e. on the web, cloud, or M. Section 110(a)(2)(M)—Consultation/ meet RACT. If no source for a specified other file sharing system). For Participation by Affected Local Entities CTG exists in a state, the state must additional submission methods, please N. Maine Regulations Submitted for submit, as a SIP revision, a negative contact the person identified in the FOR Incorporation Into the SIP declaration documenting this fact. On FURTHER INFORMATION CONTACT section. III. EPA’s Evaluation of Maine’s Negative May 18, 2020, Maine DEP submitted for For the full EPA public comment policy, Declaration for the Oil and Gas Industry for the 2008 and 2015 Ozone Standards approval into the Maine SIP, a negative information about CBI or multimedia declaration for the 2016 CTG for the Oil submissions, and general guidance on IV. Proposed Action V. Incorporation by Reference and Natural Gas Industry for the 2008 making effective comments, please visit VI. Statutory and Executive Order Reviews and 2015 ozone standards. https://www.epa.gov/dockets/ commenting-epa-dockets. Publicly I. Background and Purpose A. What is the scope of this rulemaking? available docket materials are available Maine’s Infrastructure SIP for the EPA is proposing to approve SIP at https://www.regulations.gov or at the 2015 ozone standard. revisions submitted by Maine on U.S. Environmental Protection Agency, On October 1, 2015, EPA promulgated February 14, 2020, addressing the EPA Region 1 Regional Office, Air and a revision to the ozone NAAQS (2015 infrastructure requirements of CAA Radiation Division, 5 Post Office ozone NAAQS), lowering the level of sections 110(a)(1) and 110(a)(2) for the Square—Suite 100, Boston, MA. EPA both the primary and secondary 2015 ozone NAAQS, except the requests that if at all possible, you standards to 0.070 parts per million transport provisions which will be contact the contact listed in the FOR (ppm).1 Section 110(a)(1) of the CAA addressed in a future action. FURTHER INFORMATION CONTACT section to requires states to submit, within 3 years Additionally, we are proposing to schedule your inspection. The Regional after promulgation of a new or revised approve a regulation (ambient air Office’s official hours of business are standard, SIPs meeting the applicable quality standards) submitted by Maine Monday through Friday, 8:30 a.m. to on May 28, 2019, and a statute (conflict- 4:30 p.m., excluding legal holidays and 1 National Ambient Air Quality Standards for facility closures due to COVID–19. Ozone, Final Rule, 80 FR 65292 (October 26, 2015). 2 SIP revisions that are intended to meet the FOR FURTHER INFORMATION CONTACT: Although the level of the standard is specified in applicable requirements of section 110(a)(1) and (2) the units of ppm, ozone concentrations are also of the CAA are often referred to as infrastructure Alison C. Simcox, Air Quality Branch, described in parts per billion (ppb). For example, SIPs and the applicable elements under 110(a)(2) U.S. Environmental Protection Agency, 0.070 ppm is equivalent to 70 ppb. are referred to as infrastructure requirements.

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of-interest provisions) submitted by memorandum).5 EPA has issued standards is contained in 38 MRSA Maine on September 4, 2019, which additional guidance documents and Chapter 4, sections 585 and 585–A. support the infrastructure SIP submittal. memoranda, including a September 13, Under element A of its February 14, Finally, EPA is proposing to approve a 2013, guidance document entitled 2020, infrastructure SIP submittal for SIP revision submitted by Maine on ‘‘Guidance on Infrastructure State the 2015 ozone NAAQS, the Maine DEP May 18, 2020, that provides the state’s Implementation Plan (SIP) Elements cites over 30 state regulations that it has determination, via a negative under Clean Air Act Sections 110(a)(1) adopted to control emissions related to declaration, that there are no facilities and 110(a)(2)’’ (2013 memorandum). ozone and the ozone precursors, within its borders subject to EPA’s 2016 nitrogen oxides (NOX) and volatile II. EPA’s Evaluation of Maine’s CTG for the oil and gas industry for the organic compounds (VOCs). Some of Infrastructure SIP for the 2015 Ozone 2008 and 2015 ozone standards. these, with their EPA approval citation,7 Standard Regarding the 2015 ozone are listed here: 06–096 Code of Maine infrastructure SIP submission, whenever Maine’s February 14, 2020, Regulations (CMR) Chapter 111 EPA promulgates a new or revised submission includes a detailed list of Petroleum Liquid Storage Vapor Control NAAQS, CAA section 110(a)(1) requires Maine Laws and SIP-approved Air (79 FR 65587; November 5, 2014); states to make ‘‘infrastructure SIP Quality Regulations that show precisely Chapter 115 Emission License submissions’’ to provide for the how each component of its EPA- Regulations (81 FR 50353; August 1, implementation, maintenance, and approved SIP meets the requirements of 2016); Chapter 127 New Motor Vehicle enforcement of the NAAQS. These section 110(a)(2) of the CAA for the Emission Standards (70 FR 21959; April submissions must meet the various 2015 ozone NAAQS. The following 28, 2005); Chapter 129 Surface Coating requirements of CAA section 110(a)(2), review evaluates the state’s submission facilities 77 FR 30216; May 22, 2012); as applicable. Due to ambiguity in some in light of section 110(a)(2) Chapter 134 Reasonably Available of the language of CAA section requirements and relevant EPA Control Technology for Facilities that 110(a)(2), EPA believes that it is guidance. For Maine’s February 2020 Emit Volatile Organic Compounds (65 appropriate to interpret these provisions infrastructure submission, we provide FR 20749; April 18, 2000); Chapter 138 in the specific context of acting on an evaluation of the applicable Section Reasonably Available Control infrastructure SIP submissions. EPA has 110(a)(2) elements, excluding the Technology for Facilities that Emit previously provided comprehensive transport provisions. Nitrogen Oxides (67 FR 57148; September 9, 2002); and Chapter 145 guidance on the application of these A. Section 110(a)(2)(A)—Emission NO Control Program (70 FR 11879; provisions through a guidance Limits and Other Control Measures X document for infrastructure SIP March 10, 2005). submissions and through regional This section (also referred to in On May 22, 2019, Maine submitted a actions on infrastructure submissions.3 today’s action as an element) of the Act SIP revision containing Maine’s updated Unless otherwise noted below, we are requires SIPs to include enforceable Chapter 110, ‘‘Ambient Air Quality following that approach in acting on emission limits and other control Standards,’’ which was previously this submission. In addition, in the measures, means or techniques, approved by EPA on June 24, 2014. See context of acting on such infrastructure schedules for compliance, and other 79 FR 35695. The updates to Chapter submissions, EPA evaluates the related matters. However, EPA has long 110 incorporate the current NAAQS for submitting state’s SIP for compliance interpreted emission limits and control ozone and PM2.5, and update and align with statutory and regulatory measures for attaining the standards as the rules governing the Maine ambient requirements, not for the state’s being due when nonattainment air quality standards to provide implementation of its SIP.4 EPA has planning requirements are due.6 In the consistency with the federal NAAQS. other authority to address any issues context of an infrastructure SIP, EPA is Therefore, EPA is proposing to approve concerning a state’s implementation of not evaluating the existing SIP updated Chapter 110 into the SIP. the rules, regulations, consent orders, provisions for this purpose. Instead, Consequently, we are also proposing to etc. that comprise its SIP. EPA is only evaluating whether the convert to full approval previous state’s SIP has basic structural conditional approvals of section B. What guidance did EPA use to provisions for the implementation of the 110(a)(2)(A) for Maine’s infrastructure evaluate Maine’s infrastructure SIP for NAAQS. SIPs for the 1997 and 2006 PM2.5 the 2015 ozone standard? In its February 2020 submittal for the NAAQS (October 16, 2012; 77 FR EPA highlighted the statutory 2015 ozone NAAQS, Maine cites state 63228). requirement to submit infrastructure laws and regulations in satisfaction of EPA proposes that Maine meets the SIPs within 3 years of promulgation of element A. Maine DEP statutory infrastructure requirements of section a new NAAQS in an October 2, 2007, authority with respect to air quality is 110(a)(2)(A) for the 2015 ozone NAAQS. set out in 38 MRSA Chapter 4, guidance document entitled ‘‘Guidance B. Section 110(a)(2)(B)—Ambient Air ‘‘Protection and Improvement of Air.’’ on SIP Elements Required Under Quality Monitoring/Data System Sections 110(a)(1) and (2) for the 1997 Legislative authority giving DEP general 8-hour Ozone and PM2.5 National authority to promulgate regulations is This section requires SIPs to provide Ambient Air Quality Standards’’ (2007 codified at 38 MRSA Chapter 2, for establishment and operation of Subchapter 1: ‘‘Organization and appropriate devices, methods, systems, 3 EPA explains and elaborates on these Powers.’’ Statutory authority to establish and procedures necessary to monitor, ambiguities and its approach to address them in its emission standards and regulations compile, and analyze ambient air September 13, 2013, Infrastructure SIP Guidance implementing ambient air quality quality data, and to make these data (available in the docket for today’s action), as well available to EPA upon request. Each as in numerous agency actions, including EPA’s prior action on Maine’s infrastructure SIP to 5 All referenced memoranda are included in the year, states submit annual air address the 2008 Ozone NAAQS. See 83 FR 28157 docket for today’s action. (June 18, 2018). 6 See, for example, EPA’s final rule on ‘‘National 7 The citations reference the most recent EPA 4 See Montana Envtl. Info. Ctr. v. Thomas, 902 Ambient Air Quality Standards for Lead,’’ 73 FR approval of the stated rule or of revisions to the F.3d 971 (9th Cir. 2018). 66964, 67034 (November 12, 2008). rule.

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monitoring network plans to EPA for 115, ‘‘Major and Minor Source Air Concentration (SMC)’’ (the ‘‘2010 NSR review and approval. EPA’s review of Emission License Regulations,’’ and Rule’’), 75 FR 64864 (October 20, 2010. these annual monitoring plans includes includes processes for both civil and In our proposal on March 26, 2018, our evaluation of whether the state: (i) criminal enforcement actions. regarding the submittal of infrastructure Monitors air quality at appropriate Construction of new or modified SIPS for the 2008 Pb, 2008 ozone, and locations throughout the state using stationary sources in Maine is regulated 2010 NO2 NAAQS by the Maine DEP, EPA-approved Federal Reference by 06–096 CMR Chapter 115, ‘‘Major we explained how Maine’s SIP meets Methods or Federal Equivalent Method and Minor Source Air Emission License the requirements of the Phase 2 Rule, monitors; (ii) submits data to EPA’s Air Regulations,’’ which requires best the 2008 NSR Rule, and the 2010 NSR Quality System (AQS) in a timely available control technology (BACT) Rule. See 83 FR 12905. Based on our manner; and (iii) provides EPA Regional controls for PSD sources, including the rationale contained in the March 26, Offices with prior notification of any ozone precursors VOC and NOX. EPA 2018, notice, we propose to approve planned changes to monitoring sites or proposes that Maine has met the Maine’s infrastructure SIP submittal the network plan. enforcement of SIP measures with respect to the requirements of the Pursuant to authority granted to it by requirements of section 110(a)(2)(C) Phase 2 Rule, the 2008 NSR Rule, and 38 Maine Revised Statutes Annotated with respect to the 2015 ozone NAAQS. the 2010 NSR Rule. We are proposing to approve Maine’s (MRSA) §§ 341–A(1) and 584–A, Maine Sub-Element 2: PSD Program for Major February 2020 infrastructure submittal DEP operates an air quality monitoring Sources and Major Modifications network, and EPA approved the state’s for this PSD sub-element of section 2020 Annual Air Monitoring Network Prevention of significant deterioration 110(a)(2)(C) for the 2015 ozone NAAQS. 8 (PSD) applies to new major sources or Plan for ozone on September 11, 2019. Sub-Element 3: Preconstruction Furthermore, DEP populates AQS modifications made to major sources for Permitting for Minor Sources and Minor with air quality monitoring data in a pollutants where the area in which the Modifications timely manner, and provides EPA with source is located is in attainment of, or prior notification when considering a unclassifiable with regard to, the To address the pre-construction change to its monitoring network or relevant NAAQS. EPA interprets the regulation of the modification and plan. EPA proposes that Maine has met CAA as requiring each state to make an construction of minor stationary sources the infrastructure SIP requirements of infrastructure SIP submission for a new and minor modifications of major section 110(a)(2)(B) with respect to the or revised NAAQS demonstrating that stationary sources, an infrastructure SIP 2015 ozone NAAQS. the air agency has a complete PSD submission should identify the existing permitting program in place satisfying EPA-approved SIP provisions and/or C. Section 110(a)(2)(C)—Program for the current requirements for all include new provisions that govern the Enforcement of Control Measures and regulated NSR pollutants. minor source pre-construction program for Construction or Modification of Maine DEP’s EPA-approved PSD that regulate emissions of the relevant Stationary Sources rules, contained at 06–096 CMR Chapter NAAQS pollutants. States are required to include a 115, ‘‘Major and Minor Source Air EPA last approved revisions to program providing for enforcement of Emission License Regulations,’’ contain Maine’s minor NSR program on August all SIP measures and for the regulation provisions that address applicable 1, 2016 (81 FR 50353). Maine and EPA of construction of new or modified requirements for all regulated NSR rely on the existing minor NSR program stationary sources to meet new source pollutants, including Greenhouse Gases in 06–096 CMR Chapter 115 to ensure review (NSR) requirements under (GHGs). that new and modified sources not prevention of significant deterioration In determining whether a state has a captured by the major NSR permitting (PSD) and nonattainment new source comprehensive PSD permit program, programs do not interfere with review (NNSR) programs. Part C of the EPA reviews the SIP to ensure that the attainment and maintenance of the 2015 CAA (sections 160–169B) addresses air agency has a PSD permitting ozone NAAQS. PSD, while part D of the CAA (sections program meeting the current We are proposing to find that Maine requirements for all regulated NSR 171–193) addresses NNSR requirements. has met the requirement to have a SIP- The evaluation of each state’s pollutants, including the following EPA approved minor new source review submission addressing the rules: The ‘‘Final Rule to Implement the permit program as required under infrastructure SIP requirements of 8-Hour Ozone National Ambient Air Section 110(a)(2)(C) for the 2015 ozone section 110(a)(2)(C) covers the Quality Standard—Phase 2; Final Rule NAAQS. following: (i) Enforcement of SIP to Implement Certain Aspects of the 1990 Amendments Relating to New D. Section 110(a)(2)(D)—Interstate measures; (ii) PSD program for major Transport sources and major modifications; and Source Review and Prevention of (iii) a permit program for minor sources Significant Deterioration as They Apply One of the structural requirements of and minor modifications. in Carbon Monoxide, Particulate Matter, section 110(a)(2) is section and Ozone NAAQS; Final Rule for 110(a)(2)(D)(i), also known as the ‘‘good Sub-Element 1: Enforcement of SIP Reformulated Gasoline’’ (the ‘‘Phase 2 neighbor’’ provisions, which generally Measures Rule’’), 70 FR 71612 (November 29, requires SIPs to contain adequate Maine’s authority for enforcing SIP 2005); the ‘‘Implementation of the New provisions to prohibit in-state emissions measures is established in 38 MRSA Source Review (NSR) Program for activities from having certain adverse Section 347–A, ‘‘Violations,’’ 38 MRSA Particulate Matter Less than 2.5 air quality effects on neighboring states Section 347–C, ‘‘Right of inspection and Micrometers (PM2.5)’’ (the ‘‘2008 NSR due to interstate transport of air entry,’’ 38 MRSA Section 348, ‘‘Judicial Rule’’), 73 FR 28321 (May 16, 2008); and pollution. Enforcement,’’ 38 MRSA Section 349, the ‘‘Prevention of Significant In particular, section 110(a)(2)(D)(i)(I) ‘‘Penalties,’’ and 06–096 CMR Chapter Deterioration (PSD) for Particulate requires SIPs to include provisions Matter Less Than 2.5 Micrometers prohibiting any source or other type of 8 EPA’s approval letter is included in the docket (PM2.5)—Increments, Significant Impact emissions activity in one state from for this action. Levels (SILs) and Significant Monitoring emitting any air pollutant in amounts

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that will contribute significantly to See 61 FR 5690. These NNSR among others, ‘‘any State . . . whose nonattainment, or interfere with regulations contain provisions for how lands may be affected by emissions from maintenance, of the NAAQS in another the state must treat and control sources the source or modification.’’ See 06–096 state. EPA commonly refers to these in nonattainment areas, consistent with CMR Chapter 115, § IX(E)(3); approved requirements as Prong 1 (significant 40 CFR 51.165, or appendix S to 40 CFR March 23, 1993 (58 FR 15422). Such contribution to nonattainment) and part 51. notice ‘‘shall announce availability of Prong 2 (interference with For these reasons, EPA proposes to the application, the Department’s maintenance). A state’s SIP submission approve Maine’s submittal for the PSD preliminary determination in the form for Prongs 1 and 2 is also referred to as requirements of 110(a)(2)(D)(i)(II) for the of a draft order, the degree of increment a state’s ‘‘Transport SIP.’’ In today’s 2015 ozone NAAQS. consumption that is expected from the action, EPA is not evaluating Maine’s Section 110(a)(2)(D)(i)(II)—Visibility source or modification, as well as the Transport SIP (i.e., Prongs 1 and 2; Protection (Prong 4) opportunity for submission of written combined as (D)1 in Table 1 below). public comment.’’ See 06–096 CMR EPA will address Maine’s Transport SIP Prong 4 requires a state’s SIP to have Chapter 115, § IX(E)(2). for the 2015 ozone NAAQS in a future adequate provisions prohibiting These public notice requirements are action. emissions in amounts that will interfere consistent with the Federal SIP- Today’s action, however, does address with measures in other states’ SIPs to approved PSD program’s public notice Section 110(a)(2)(D)(i)(II), which protect visibility. The prong 4 requirements for affected states under requires SIPs to contain adequate requirement is closely connected to the 40 CFR 51.166(q). Therefore, we provisions to prohibit emissions that regional haze program under part C of propose to approve Maine’s compliance will interfere with measures included in the CAA, in which states work together with the infrastructure SIP requirements the applicable implementation plan for in a regional planning process to of CAA section 126(a) for the 2015 any other state under part C of the Act determine each state’s contribution to ozone NAAQS. Maine has no to prevent significant deterioration of air the visibility impairment in that region obligations under any other provision of quality and to protect visibility. EPA and agree to emission reduction CAA section 126, and no source or commonly refers to these requirements measures to improve visibility. Maine is sources within the state are the subject as Prong 3 (Prevention of Significant a member of the Mid-Atlantic/North of an active finding under section 126 Deterioration) and Prong 4 (Visibility East Visibility Union. EPA regulations with respect to the 2015 ozone NAAQS. Protection). Today’s action also require that a state participating in a Section 110(a)(2)(D)(ii)—International addresses Section 110(a)(2)(D)(ii) of the regional planning process include in its Pollution Abatement Act, which requires SIPs to contain regional haze SIP all measures needed provisions to ensure compliance with to achieve its apportionment of This sub-element also requires each sections 126 and 115 of the Act relating emission reduction obligations agreed SIP to contain provisions requiring to interstate and international pollution upon through that process. See, e.g., 40 compliance with the applicable abatement, respectively. CFR 51.308(d)(3). Thus, a fully requirements of CAA section 115 approved regional haze SIP meeting the relating to international pollution Section 110(a)(2)(D)(i)(II)—PSD (Prong requirements of 40 CFR 51.308 will abatement. Section 115 authorizes the 3) ensure that emissions from sources Administrator to require a state to revise To prevent significant deterioration of under an air agency’s jurisdiction are its SIP to alleviate international air quality, this sub-element requires not interfering with measures required transport into another country where SIPs to include provisions that prohibit to be included in other air agencies’ the Administrator has made a finding any source or other type of emissions plans to protect visibility and will, with respect to emissions of a NAAQS activity in one state from interfering therefore, satisfy Prong 4. pollutant and its precursors, if with measures that are required in any EPA approved Maine’s Regional Haze applicable. There are no final findings other state’s SIP under Part C of the SIP on April 24, 2012 (77 FR 24385). under section 115 against Maine with CAA. As explained in the 2013 Accordingly, EPA proposes that Maine respect to the 2015 ozone NAAQS. memorandum,9 a state may meet this meets the visibility protection Therefore, EPA is proposing that Maine requirement with respect to in-state requirements of 110(a)(2)(D)(i)(II) for the has met the applicable infrastructure sources and pollutants that are subject 2015 ozone NAAQS. SIP requirements of section to PSD permitting through a 110(a)(2)(D)(ii) related to CAA section comprehensive PSD permitting program Section 110(a)(2)(D)(ii)—Interstate 115 for the 2015 ozone NAAQS. that applies to all regulated NSR Pollution Abatement E. Section 110(a)(2)(E)—Adequate pollutants and that satisfies the This sub-element requires that each Resources requirements of EPA’s PSD SIP contain provisions requiring implementation rules. Maine has a compliance with requirements of CAA Section 110(a)(2)(E)(i) requires each comprehensive PSD permitting program section 126 relating to interstate SIP to provide assurances that the state in place satisfying the current pollution abatement. Section 126(a) will have adequate personnel, funding, requirements for all regulated NSR requires new or modified sources to and legal authority under state law to pollutants, as explained above in the notify neighboring states of potential carry out its SIP. In addition, section discussion of Section 110(a)(2)(C). impacts from the source. The statute 110(a)(2)(E)(ii) requires each state to For in-state sources not subject to does not specify the method by which comply with the requirements for state PSD, this requirement can be satisfied the source should provide the boards in CAA section 128. Finally, through a fully approved nonattainment notification. States with SIP-approved section 110(a)(2)(E)(iii) requires that, new source review (NNSR) program PSD programs must have a provision where a state relies upon local or with respect to any previous NAAQS. requiring such notification by new or regional governments or agencies for the EPA approved revisions to Maine’s modified sources. implementation of its SIP provisions, NNSR regulations on February 14, 1996. EPA-approved regulations require the the state retain responsibility for Maine DEP to provide pre-construction ensuring implementation of SIP 9 Included in the docket for today’s action. notice of new or modified sources to, obligations with respect to relevant

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NAAQS. Section 110(a)(2)(E)(iii), section 110(a)(2)(E) for the 2015 ozone members ‘‘must be chosen to represent however, does not apply to this action NAAQS. the broadest possible interest and because Maine does not rely upon local experience that can be brought to bear Sub-Element 2: State Board or regional governments or agencies for on the administration and Requirements Under Section 128 of the the implementation of its SIP implementation of’’ Maine’s CAA provisions. environmental laws and that ‘‘[a]t least Section 110(a)(2)(E)(ii) requires each 3 members must have technical or Sub-Element 1: Adequate Personnel, SIP to contain provisions that comply Funding, and Legal Authority Under scientific backgrounds in environmental with the state board requirements of issues and no more than 4 members may State Law To Carry Out Its SIP, and section 128(a) of the CAA. That Related Issues be residents of the same congressional provision contains two explicit district.’’ Id. § 341–C(2). As EPA has Maine, through its infrastructure SIP requirements: (1) That any board or also explained in previous notices of submittal, has documented that its air body which approves permits or proposed rulemakings related to Maine agency has authority and resources to enforcement orders under this chapter infrastructure SIP submittals, section carry out its SIP obligations. Maine cites shall have at least a majority of members 341–C fulfills the requirement that at 38 MRSA § 341–A, ‘‘Department of who represent the public interest and do least a majority of Board members Environmental Protection,’’ 38 MRSA not derive any significant portion of represent the public interest, but it does § 341–D, ‘‘Board responsibilities and their income from persons subject to not address the requirement that at least duties,’’ 38 MRSA § 342, permits and enforcement orders under a majority ‘‘not derive any significant ‘‘Commissioner, duties,’’ and 38 MRSA this chapter, and (2) that any potential portion of their income from persons § 581, ‘‘Declaration of findings and conflicts of interest by members of such subject to’’ air permits and enforcement intent.’’ These statutes provide the board or body or the head of an orders. See, e.g., 83 FR 66184 at 66192 Maine DEP with the legal authority to executive agency with similar powers be (December 26, 2018). Nor is section enforce air pollution control adequately disclosed. Section 128 341–C(2) currently in Maine’s SIP. Id. In requirements and carry out SIP further provides that a state may adopt those previous actions, however, Maine obligations with respect to the 2015 more stringent conflicts of interest DEP committed to revise section 341–C ozone NAAQS. Additionally, state law requirements and requires EPA to to address the requirement that at least provides the DEP with the authority to approve any such requirements a majority of Board members ‘‘not assess preconstruction permit fees and submitted as part of a SIP. derive a significant portion of their Maine DEP consists of a annual operating permit fees from air income from persons subject to’’ air Commissioner and a Board of emissions sources and establishes a permits or enforcement orders and to general revenue reserve account within Environmental Protection (‘‘BEP’’ or ‘‘Board’’), which is an independent submit the necessary provisions to EPA the general fund to finance the state for inclusion in the SIP. Id. clean air programs. Maine also receives authority under state law that reviews certain permit applications in the first On September 4, 2019, Maine did so, CAA sections 103 and 105 grant funds submitting revisions to 38 MRSA through Performance Partnership Grants instance and also renders final decisions on appeals of permitting actions taken sections 341–C(2) and 341–C(8) for along with required state-matching 11 by the Commissioner as well as some inclusion in the SIP. funds to provide funding necessary to Maine revised section 341–C(2) by carry out SIP requirements. enforcement decisions by the Commissioner. Because the Board has adding one word, indicating that Board Maine states in its February 14, 2020, members ‘‘must be chosen to represent submittal for 2015 ozone NAAQS that authority under state law to hear appeals of some CAA permits and the broadest possible public interest and the Bureau of Air Quality had a staff of experience that can be brought to bear 53 and a budget of $4.8 million for FY enforcement orders, EPA considers that the Board has authority to ‘‘approve’’ on the administration and 2016. ME DEP staff and operations are implementation of’’ Maine’s funded by the State and through EPA those permits or enforcement orders, as recommended in the 2013 Guidance at environmental laws. (emphasis added). grants, including annual funding EPA concludes that the addition of the through CAA sections 103 and 105 to 42, and that the requirement of CAA § 128(a)(1) applies to Maine—that is, word ‘‘public’’ only strengthens the assist with the costs of implementing conclusion that Maine fulfills the programs for the prevention and control that ‘‘any board or body which approves permits or enforcement orders under requirement that at least a majority of of air pollution or implementation of Board members represent the public national primary and secondary ambient this chapter shall have at least a majority of members who represent the interest. As for section 341–C(8), it now air quality standards. Maine also has an provides that: EPA-approved fee program under CAA public interest and do not derive any title V which is used to support title V significant portion of their income from A board member may not participate in the program elements such as permitting, persons subject to permits and review of or act on any permitting decision or enforcement order under the federal Clean monitoring, testing, inspections, and enforcement orders under this chapter.’’ Pursuant to state law, the BEP Air Act . . . if the board member receives or enforcement. Furthermore, ME DEP’s derives a significant portion of that board budget has been consistent over the past consists of seven members appointed by the Governor, subject to confirmation by member’s income from persons subject to number of years and over these years permits or enforcement orders under the the State Legislature. See 38 MRSA Maine has been able to meet its federal Clean Air Act. Board members whose § 341–C(1). The purpose of the Board ‘‘is statutory commitments under the Act.10 participation is restricted under this to provide informed, independent and Based upon Maine’s submittal and this paragraph shall recuse themselves from all timely decisions on the interpretation, additional information, EPA proposes administration and enforcement of the 11 that Maine meets the infrastructure SIP By email dated October 20, 2020, Maine DEP laws relating to environmental clarified that it was requesting to add 38 MRSA requirements of this sub-element of protection and to provide for credible, § 341–C(8) to the SIP, except subparagraph (A), which addresses Board member participation in 10 https://www.maine.gov/budget/sites/ fair and responsible public participation decisions regarding permits issued under the Clean maine.gov.budget/files/inline-files/Annual%20 in department decisions.’’ Id. § 341–B. Water Act. The October 20, 2020, email is included Report%202018-2019%20NEW.PDF. State law further provides that Board in the docket for this action.

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permitting and enforcement matters under § 341–C(7), together satisfy the CAA for such systems, and subsequent record the federal Clean Air Act. section 128(a)(2) requirement for Maine keeping and reporting requirements. See 38 MRSA § 341–C(8)(B). Section 341– with respect to Board members, and 54 FR 11524 (August 9, 1988). Maine C(8) further provides, as recommended EPA approved both statutes into the 06–096 CMR Chapter 137, ‘‘Emission in EPA guidance,12 that ‘‘a significant Maine SIP. See 83 FR 28157 (June 18, Statements’’ requires sources to monitor portion of income’’ means ‘‘10% or 2018). For more information, see 83 FR and report annually to Maine DEP more of gross personal income for a 12905, 12912 (March 26, 2018). EPA emissions of criteria pollutants and calendar year’’ or ‘‘50% or more if the proposes that Maine’s SIP also satisfies other emissions-related information recipient is over 60’’ and receives it CAA section 128(a)(2) with respect to under certain circumstances. See 82 FR ‘‘under retirement, pension or similar Board members for the 2015 ozone 20257 (May 1, 2017). arrangement.’’ NAAQS for the same reasons. Maine cites its regulation for EPA proposes that section 341–C(2) Regarding the DEP Commissioner, implementing its operating permit and (8)(B) satisfy the requirements of state law at 38 MRSA § 341–A(3)(D) also program pursuant to 40 CFR part 70: CAA § 128(a)(1) that at least a majority explicitly makes that official subject to 06–096 CMR Chapter 140, ‘‘Part 70 Air of Board members ‘‘represent the public 5 MRSA § 18, thus satisfying CAA Emission License Regulations.’’ These interest and do not derive any section 128(a)(2) with respect to the regulations identify the sources of air significant portion of their income from Commissioner. While 38 MRSA § 341– emissions that require a Part 70 air persons subject to’’ air permits and A(3)(D) is not currently in the SIP, emission license and incorporate the enforcement orders. EPA also proposes Maine DEP submitted it to EPA on requirements of Title IV and Title V of to add revised sections 341–C(2) and September 4, 2019, and requested that it the Clean Air Act, as amended, 42 (8)(B) to the SIP, as requested by Maine be added to the SIP. Therefore, we U.S.C. 7401, et seq.; and 38 MRSA DEP. We are also proposing to convert propose to approve, and incorporate §§ 344 and 590. These regulations to full approval our previous into the Maine SIP, 38 MRSA § 341– contain compliance assurance conditional approvals of Maine’s A(3)(D) for the 2015 ozone NAAQS. We requirements regarding monitoring and infrastructure SIP submittals for the also propose to convert previous reporting for licensed sources requiring 2008 ozone, 2008 Pb and 2010 NO conditional approvals of Maine’s a Part 70 air emission license. See 66 FR 2 infrastructure SIP submittals for the 52874 (October 18, 2001). In addition, NAAQS (June 18, 2018; 83 FR 28157); 2008 ozone; 2008 Pb; 2010 NO ; 2010 Maine cites 06–096 CMR Chapter 115, the 2010 SO NAAQS (April 30, 2019; 2 2 SO ; 1997, 2006, and 2012 PM ‘‘Major and Minor Source Air Emission 84 FR 18142); the 1997 and 2006 PM 2 2.5 2.5 NAAQS to full approvals for section License Regulations,’’ which contains NAAQS (October 16, 2012; 77 FR 128(a)(2). compliance assurance requirements for 63228); and the 2012 PM NAAQS 2.5 In sum, and for the reasons provided licensed sources. See 81 FR 50353 (October 1, 2018; 83 FR 49295) for these above, EPA proposes that Maine meets (August 1, 2016). particular requirements of section the infrastructure SIP requirements of Regarding the section 110(a)(2)(F) 110(a)(2)(E)(ii). section 110(a)(2)(E)(ii) for the 2015 requirements that the SIP provides for As noted above, section 128(a)(2) of ozone NAAQS. correlation and public availability of the Act provides that ‘‘any potential emission reports, Maine’s emission F. Section 110(a)(2)(F)—Stationary conflicts of interest by members of such statement rule, Chapter 137, requires Source Monitoring System board or body or the head of an facilities to report emissions of air executive agency with similar powers be States must establish a system to pollutants on an annual basis. The adequately disclosed.’’ The purpose of monitor emissions from stationary Maine DEP uses a web-based electronic section 128(a)(2) is to assure that sources and submit periodic emissions reporting system, the Maine Air conflicts of interest are disclosed by the reports. Each plan shall also require the Emissions Inventory Reporting System ultimate decision maker in permit or installation, maintenance, and (‘‘MAIRIS’’), to submit reported enforcement order decisions. See, e.g., replacement of equipment, and the emissions data to EPA under the 80 FR 42446, 42454 (July 17, 2015). implementation of other necessary national emission inventory (NEI) Although the Board is the ultimate steps, by owners or operators of program. NEI data are available to the decision maker on air permitting stationary sources to monitor emissions public.13 The MAIRIS system decisions in Maine, certain air from such sources. The state plan shall electronically correlates reported enforcement orders of the Maine DEP also require periodic reports on the emissions data with permit conditions Commissioner are not reviewable by the nature and amounts of emissions and and other applicable standards and Board, but rather may be appealed emissions-related data from such identifies inconsistencies and potential directly to Maine Superior Court. For sources, and correlation of such reports compliance concerns. this reason, EPA interprets the potential by each state agency with any emission In addition, Maine DEP certifies that conflict-of-interest requirements of CAA limitations or standards established Maine’s Freedom of Access law does not § 128(a)(2) to be applicable in Maine to pursuant to this chapter. Lastly, the include any exceptions that apply to both Board members and the DEP reports shall be available at reasonable stationary source emissions and that Commissioner. times for public inspection. there are no provisions in Maine law In the infrastructure SIP action for the Maine’s infrastructure submittal that would prevent the use of any 2008 Pb, 2008 ozone, and 2010 NO2 references several existing state credible evidence of noncompliance, as NAAQS, EPA determined that Maine’s regulations that require sources to required by 40 CFR 51.212. See also 06– conflict of interest statute, 5 MRSA § 18, monitor emissions and submit reports. 096 CMR Chapter 140, § 3(E)(7)(a)(v) and a provision explicitly making it Maine 06–096 CMR Chapter 117, (‘‘Notwithstanding any other provision applicable to Board members, 38 MRSA ‘‘Source Surveillance’’ specifies air- in the State Implementation Plan emission sources that are required to approved by the EPA or Section 114(a) 12 See Memorandum from David O. Bickart to operate continuous emission monitoring Regional Air Directors, ‘‘Guidance to States for of the CAA, any credible evidence may Meeting Conflict of Interest Requirements of systems (CEMS) and details the Section 128,’’ Suggested Definitions, March 2, 1978, performance specifications, quality 13 NEI data are available at https://www.epa.gov/ included in the docket for this action. assurance requirements and procedures air-emissions-inventories.

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be used for the purpose of establishing emission or deposit of any materials of emergency, the Governor may, among whether a person has violated or is in into any waters, air or land of th[e] State other things, ‘‘[o]rder the termination, violation of any statute, regulation, or constitutes a substantial and immediate temporary or permanent, of any process, Part 70 license requirement.’’). danger to the health, safety or general operation, machine or device which EPA proposes that Maine meets the welfare of any person, persons or may be causing or is understood to be infrastructure SIP requirements of property.’’ Id. § 348(3). Thus, these the cause of the state of emergency,’’ id. section 110(a)(2)(F) for the 2015 ozone provisions authorize DEP to issue an § 742(1)(C)(11). NAAQS. administrative order or to seek a court Finally, Maine’s submittal cites 06– G. Section 110(a)(2)(G)—Emergency order to restrain any source from 096 CMR Chapter 109, ‘‘Emergency Powers causing or contributing to emissions Episode Regulations,’’ which sets forth that present an imminent and various emission reduction plans This section requires that a plan substantial endangerment to public intended to prevent air pollution from provide for state authority analogous to health or welfare, or the environment, if reaching levels that would cause that provided to the EPA Administrator there is also a violation of a law, imminent and substantial harm and in section 303 of the CAA, and adequate regulation, order, or permit recognizes the Commissioner’s authority contingency plans to implement such administered or issued by DEP, as the to issue additional emergency orders authority. Section 303 of the CAA case may be. pursuant to 38 MRSA § 347–A, as provides authority to the EPA Maine also cites 38 MRSA § 591, necessary to the health of persons, by Administrator to seek a court order to ‘‘Prohibitions,’’ as contributing to its restricting emissions during periods of restrain any source from causing or authority. Section 591 provides that air pollution emergencies. For these contributing to emissions that present ‘‘[n]o person may discharge air reasons, we propose to find that Maine’s an ‘‘imminent and substantial contaminants into ambient air within a submittal and certain state statutes and endangerment to public health or region in such manner as to violate regulations provide for authority welfare, or the environment.’’ Section ambient air quality standards comparable to that provided to the 303 further authorizes the Administrator established under this chapter or Administrator in CAA § 303. to issue ‘‘such orders as may be emission standards established pursuant necessary to protect public health or Section 110(a)(2)(G) also requires that, to section 585, 585–B or 585–K.’’ In for any NAAQS, Maine have an welfare or the environment’’ in the those cases where emissions of ozone, event that ‘‘it is not practicable to assure approved contingency plan for any Air or ozone precursors may be causing or Quality Control Region (AQCR) within prompt protection . . . by contributing to an ‘‘imminent and the state that is classified as Priority I, commencement of such civil action.’’ substantial endangerment to public IA, or II. See 40 CFR 51.152(c). A We propose to find that a combination health or welfare, or the environment,’’ contingency plan is not required if the of state statutes and regulations a violation of § 591 would also occur, entire state is classified as Priority III for discussed in Maine’s submittal provides since Maine law provides that ambient a particular pollutant. Id. All AQCRs in for authority comparable to that given air quality standards are designed to Maine are classified as Priority III areas the Administrator in CAA section 303, prevent ‘‘air pollution,’’ id. § 584, which for NO and ozone, pursuant to 40 CFR as explained below. First, 38 MRSA state law expressly defines as ‘‘the 2 52.1021. Consequently, as relevant to § 347–A, ‘‘Emergency Orders,’’ provides presence in the outdoor atmosphere of that ‘‘[w]henever it appears to the one or more air contaminants in this proposed rulemaking action, commissioner, after investigation, that sufficient quantities and of such Maine’s SIP does not need to contain an there is a violation of the laws or characteristics and duration as to be emergency contingency plan meeting regulations [DEP] administers or of the injurious to human, plant or animal life the specific requirements of 51.152 with terms or conditions of any of [DEP’s] or to property, or which unreasonably respect to NO2 and ozone. orders that is creating or is likely to interfere with the enjoyment of life and Maine does, however, as a matter of create a substantial and immediate property,’’ id. § 582(3) (emphasis practice, post on the internet daily danger to public health or safety or to added). forecasted ozone levels through the EPA the environment, the commissioner may In its submittal, Maine further AIRNOW and EPA ENVIROFLASH order the person or persons causing or explains that sections 347–A and 591 systems. Information regarding these contributing to the hazard to ‘‘together authorize the Commissioner to two systems is available on EPA’s immediately take such actions as are issue an emergency order upon finding website at www.airnow.gov. Notices are necessary to reduce or alleviate the an apparent violation of DEP laws or sent out to ENVIROFLASH participants danger.’’ See 38 MRSA § 347–A(3). regulations to address emissions of when levels are forecast to exceed the Section 347–A further authorizes the criteria pollutants, air contaminants current 8-hour ozone standard. In DEP Commissioner to initiate an governed by standards promulgated addition, when levels are expected to enforcement action in state court in the under section 585, and hazardous air exceed the ozone standard in Maine, the event of a violation of such emergency pollutants governed by standards media are alerted via a press release, order issued by the Commissioner. Id. promulgated under section 585–B.’’ and the National Weather Service § 347–A(1)(A)(4). Similarly, 38 MRSA Maine explains that, in the unlikely (NWS) is alerted to issue an Air Quality § 348, ‘‘Judicial Enforcement,’’ event that air emissions create a Advisory through the normal NWS authorizes DEP to institute injunction substantial or immediate threat to the weather alert system. These actions are proceedings ‘‘[i]n the event of a public health, safety, or to the similar to the notification and violation of any provision of the laws environment without violating any DEP communication requirements of 40 CFR administered by [DEP] or of any order, law or regulation, the DEP 51.152. regulation, license, permit, approval, commissioner can notify the Governor EPA proposes that Maine meets the administrative consent agreement or of an imminent threat, and the Governor applicable infrastructure SIP decision of the board or commissioner.’’ can then exercise emergency authority requirements for section 110(a)(2)(G), Id. § 348(1). Section 348 also authorizes under 37–B MRSA § 742 to issue an including contingency-plan DEP to seek a court order to a restrain order to terminate the cause of the requirements, for the 2015 ozone a source if it ‘‘finds that the discharge, emergency. In the declaration of a state NAAQS.

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H. Section 110(a)(2)(H)—Future SIP submission schedule under subparts 2 procedures for interagency consultation, Revisions through 5 of part D, extending as far as resolution of conflicts, and public This section requires that a state’s SIP 10 years following area designations for consultation and notification. Finally, provide for revision from time to time some elements, whereas infrastructure the Maine Administrative Procedure Act as may be necessary to take account of SIP submissions are due within three (Maine Revised Statutes Title 5, Chapter changes in the NAAQS or availability of years after adoption or revision of a 375, subchapter 2) requires notification improved methods for attaining the NAAQS. Accordingly, EPA takes action and provision of comment opportunities to all parties affected by proposed NAAQS and whenever EPA finds that on part D attainment plans through separate processes. regulations. All SIP revisions undergo the SIP is substantially inadequate. public notice and opportunity for Maine’s infrastructure submittal J. Section 110(a)(2)(J)—Consultation hearing, which allows for comment by references 38 MRSA § 581, ‘‘Declaration With Government Officials; Public the public, including local governments. of findings and intent,’’ which Notifications; Prevention of Significant EPA proposes that Maine meets the characterizes the state’s laws regarding Deterioration; Visibility Protection infrastructure SIP requirements of this the Protection and Improvement of Air Section 110(a)(2)(J) of the CAA portion of section 110(a)(2)(J) for the as an exercise of ‘‘the police power of requires that each SIP ‘‘meet the 2015 ozone NAAQS. the State in a coordinated state-wide applicable requirements of section 121 program to control present and future of this title (relating to consultation), Sub-Element 2: Public Notification sources of emission of air contaminants section 127 of this title (relating to Pursuant to CAA section 127, states to the end that air polluting activities of public notification), and part C of this must notify the public if NAAQS are every type shall be regulated in a subchapter (relating to PSD of air exceeded in an area, advise the public manner that reasonably insures the quality and visibility protection).’’ The of health hazards associated with continued health, safety and general evaluation of the submission from exceedances, and enhance public welfare of all of the citizens of the State; Maine with respect to these awareness of measures that can be taken protects property values and protects requirements is described below. to prevent exceedances and of ways in plant and animal life.’’ which the public can participate in Sub-Element 1: Consultation With In addition, we note that Maine DEP regulatory and other efforts to improve Government Officials is required by statute to ‘‘prevent, abate air quality. and control the pollution of the air[, to] Pursuant to CAA section 121, a state As mentioned above, 38 MRSA § 341– preserve, improve and prevent must provide a satisfactory process for A(1) authorizes Maine DEP to, among diminution of the natural environment consultation with local governments other things, ‘‘educate the public on of the State[, and to] protect and and Federal Land Managers (FLMs) in natural resource use, requirements and enhance the public’s right to use and carrying out its NAAQS implementation issues.’’ To that end, the DEP issues enjoy the State’s natural resources.’’ See requirements. press releases and posts warnings on its 38 MRSA § 341–A(1). Furthermore, DEP Maine 38 MRSA § 341–A(1) website advising people what they can is authorized to ‘‘adopt, amend or repeal authorizes Maine DEP to ‘‘prevent, abate do to help prevent NAAQS exceedances rules and emergency rules necessary for and control the pollution of the air[,] and avoid adverse health effects on poor the interpretation, implementation and improve and prevent diminution of the air quality days. In addition, the Maine enforcement of any provision of law that natural environment of the State[,] DEP website includes near real-time air the department is charged with protect and enhance the public’s right to quality data, and a record of historical administering.’’ Id. § 341–H; see also id. use and enjoy the State’s natural data. Air quality forecasts are § 585–A (recognizing DEP’s rulemaking resources and . . . educate the public distributed daily via email to interested authority to propose SIP revisions). on natural resource use, requirements parties. Air quality alerts are sent by These statutes give Maine DEP the and issues.’’ Maine state law further email to a large number of affected power to revise the Maine SIP from time provides that one of the purposes of the parties, including the media. Alerts to time as may be necessary to take BEP is ‘‘to provide for credible, fair and include information about the health account of changes in the NAAQS or the responsible public participation in implications of elevated pollutant levels availability of improved methods for department decisions,’’ 38 MRSA § 341– and list actions to reduce emissions and attaining the NAAQS and whenever the B, and authorizes it to ‘‘cooperate with to reduce the public’s exposure. Also, EPA finds that the SIP is substantially other state or federal departments or Air Quality Data Summaries of the inadequate. Therefore, EPA proposes agencies to carry out’’ its year’s air quality monitoring results are that Maine meets the infrastructure SIP responsibilities, id. § 341–F(6). In issued annually and posted on the requirements of CAA section addition, 06–096 CMR Chapter 115, Maine DEP website. The state is also an 110(a)(2)(H) with respect to the 2015 § IX(E)(3), which was approved by EPA active partner in EPA’s AirNow and ozone NAAQS. on March 23, 1993, requires DEP to EnviroFlash air quality alert programs. provide notice to relevant municipal I. Section 110(a)(2)(I)—Nonattainment EPA proposes that Maine meets the officials and FLMs, among others, of Area Plan or Plan Revisions Under Part infrastructure SIP requirements of this DEP’s preparation of a draft permit for D portion of section 110(a)(2)(J) for the a new or modified source. See 58 FR 2015 ozone NAAQS. Section 110(a)(2)(I) provides that each 15422. plan or plan revision for an area In addition, with respect to area Sub-Element 3: PSD designated as a nonattainment area shall reclassifications to Class I, II, or III for EPA has already discussed Maine’s meet the applicable requirements of part PSD purposes, the DEP is required to PSD program in the context of D of the CAA. EPA interprets section offer an opportunity for a public hearing infrastructure SIPs in the paragraphs 110(a)(2)(I) to be inapplicable to the and to consult with appropriate FLMs. addressing section 110(a)(2)(C) and infrastructure SIP process because See 38 MRSA § 583–B; and 06–096 CMR 110(a)(2)(D)(i)(II) and determined that it specific SIP submissions for designated Chapter 114, § 1(E). Maine’s satisfies the requirements of EPA’s PSD nonattainment areas, as required under Transportation Conformity rule at 06– implementation rules. Therefore, the part D, are subject to a different 096 CMR Chapter 139 also provides SIP also satisfies the PSD sub-element of

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section 110(a)(2)(J) for the 2015 ozone air quality modeling as the stringent than those adopted by DEP or NAAQS. EPA proposes to approve the Administrator has prescribed and for that ‘‘touch on matters not dealt with’’ SIP for the PSD sub-element of section the submission, upon request, of data by state law. Finally, Maine cites 110(a)(2)(J) for the 2015 ozone NAAQS. related to such modeling. Chapter 9 of Maine’s initial SIP, which In its infrastructure submittal, DEP was approved on May 31, 1972 and Sub-Element 4: Visibility Protection also cites 06–096 CMR Chapter 116, contains intergovernmental cooperation States are subject to visibility and ‘‘Prohibited Dispersion Techniques,’’ provisions. See 37 FR 10842. regional haze program requirements which includes regulations applicable EPA proposes that Maine meets the under part C of the CAA (which to the State’s air quality modeling infrastructure SIP requirements of includes sections 169A and 169B). In consistent with federal requirements section 110(a)(2)(M) with respect to the the event of the establishment of a new concerning stack height and other 2015 ozone NAAQS. NAAQS, however, the visibility and dispersion techniques, such as merging N. Maine Regulations Submitted for regional haze program requirements of plumes. These regulations also define Incorporation Into the SIP under part C do not change. Thus, as the area surrounding the source where noted in EPA’s 2013 memorandum, we ambient air quality standards do not As noted under sections 110(a)(2)(A) find that there is no new visibility have to be met. Maine also collaborates and (E) above, Maine submitted obligation ‘‘triggered’’ under section with the Ozone Transport Commission revisions to a regulation and to a statute 110(a)(2)(J) when a new NAAQS (OTC) and the Mid-Atlantic Regional for approval into the Maine SIP. On May becomes effective. In other words, the Air Management Association and EPA 22, 2019, Maine submitted a SIP visibility protection requirements of in order to perform large-scale urban air revision containing Maine’s updated section 110(a)(2)(J) are not germane to shed modeling for ozone if necessary. Chapter 110, ‘‘Ambient Air Quality infrastructure SIPs for the 2015 ozone EPA proposes that Maine meets the Standards.’’ EPA is proposing to NAAQS. Therefore, we are not requirements of section 110(a)(2)(K) for approve this revised regulation into the proposing action on this sub-element. the 2015 ozone NAAQS. Maine SIP in order to update Maine’s ambient air quality standards to be K. Section 110(a)(2)(K)—Air Quality L. Section 110(a)(2)(L)—Permitting Fees consistent with the 2015 ozone and Modeling/Data This section requires SIPs to mandate 2012 PM2.5, and to align the rules Section 110(a)(2)(K) of the Act that each major stationary source pay governing the Maine ambient air quality requires that a SIP provide for the permitting fees to cover the costs of standards to provide consistency with performance of such air quality reviewing, approving, implementing, the federal NAAQS. modeling as the EPA Administrator may and enforcing a permit. On September 4, 2019, to meet prescribe for the purpose of predicting Maine implements and operates a conflict-of-interest requirements of the effect on ambient air quality of any Title V permit program, see 38 MRSA section 110(a)(2)(E) for the 2015 ozone emissions of any air pollutant for which § 353–A; 06–096 CMR Chapter 140, NAAQS, as well as for previous EPA has established a NAAQS, and the which was approved by EPA on October infrastructure submittals for other submission, upon request, of data 18, 2001, see 66 FR 52874. To gain this NAAQS, Maine submitted Maine Public related to such air quality modeling. approval, Maine demonstrated the Law 2019, Chapter 180 amending 38 EPA has published modeling guidelines ability to collect sufficient fees to run MRS Sections 341–C(2) and 341–C(8), at 40 CFR part 51, Appendix W, for the program. See 61 FR 49289 effective September 19, 2019; and 38 predicting the effects of emissions of (September 19, 1996). Maine also notes MRS Section 341–A(3)(D), effective June criteria pollutants on ambient air in its infrastructure submittal that the 15, 2011. EPA is proposing to approve quality. EPA also recommends in the costs of all CAA permitting, these conflict-of-interest provisions into 2013 memorandum that, to meet section implementation, and enforcement for the Maine SIP. 110(a)(2)(K), a state submit or reference new or modified sources are covered by III. EPA’s Evaluation of Maine’s the statutory or regulatory provisions Title V fees, which are set by Maine Negative Declaration for the Oil and that provide the air agency with the DEP. See 38 MRSA §§ 353–A, 352(2)(E). Gas Industry for the 2008 and 2015 authority to conduct such air quality Therefore, EPA proposes that Maine Standards modeling and to provide such modeling meets the infrastructure SIP data to EPA upon request. requirements of section 110(a)(2)(L) for On May 18, 2020, Maine submitted a Maine state law implicitly authorizes the 2015 ozone NAAQS. negative declaration for the 2016 Oil Maine DEP to perform air quality and Natural Gas Industry CTG for the modeling and provide such modeling M. Section 110(a)(2)(M)—Consultation/ 2008 and 2015 ozone standards. The data to EPA upon request. See 38 MRSA Participation by Affected Local Entities term ‘‘negative declaration’’ means that §§ 341–A(1), 581, 591–B. In addition, To satisfy Element M, states must the state has explored whether any EPA-approved 06–096 CMR Chapter provide for consultation with, and facilities subject to the applicability 115, ‘‘Major and Minor Source Air participation by, local political requirements of the CTG exist within Emissions License Regulations,’’ and subdivisions affected by the SIP. Maine the state and concluded that there are 06–096 CMR Chapter 140 Part 70, ‘‘Air Administrative Procedure Act, 5 MRSA no such sources within its borders. The Emission License Regulations,’’ provide Chapter 375, requires public notice of negative declaration means that Maine that any modeling required for pre- all SIP revisions prior to their adoption, has no applicable stationary sources of construction permits and operating which allows for comment by the VOC that are covered by this CTG. This permits for minor and major sources be public, including local political is consistent with EPA’s understanding performed consistent with EPA- subdivisions. In addition, Maine cites of where sources subject to the Oil and prescribed modeling guidelines at 40 38 MRSA § 597, ‘‘Municipal air Natural Gas Industry CTG are located CFR part 51, appendix W. Chapter 115 pollution control,’’ which provides that based on EPA data resources of also requires that applicants submit data municipalities are not preempted from industrial activity within the United related to modeling to Maine DEP. See studying air pollution and adopting and States, such as the National Emissions 06–096 CMR chapter 115, § VII.E. enforcing ‘‘air pollution control and Inventory (NEI) database of sources of Consequently, the SIP provides for such abatement ordinances’’ that are more air pollution, which is available at:

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https://www.epa.gov/air-emissions- Maine’s negative declaration into the ‘‘good neighbor’’ provisions (i.e., section inventories/national-emissions- SIP. 110(a)(2)(D)(i)), also known as a state’s inventory-nei. We also note that EPA Transport SIP. Maine’s Transport SIP for IV. Proposed Action Region 1 worked with Maine, and EPA the 2015 ozone NAAQS will be headquarters’ technical experts on the EPA is proposing to approve most of addressed in a future action. CTG, to review the applicability criteria the elements of the infrastructure SIP EPA’s proposed action regarding each of EPA’s 2016 Oil and Gas CTG to assist submitted by Maine on February 14, infrastructure SIP requirement for the Maine with its determination. 2020, for the 2015 ozone NAAQS. 2015 ozone NAAQS is contained in Therefore, we are proposing to approve Today’s action does not include the Table 1 below.

TABLE 1—PROPOSED ACTION ON NEW HAMPSHIRE’S INFRASTRUCTURE SIP SUBMITTAL FOR THE 2015 OZONE NAAQS

2015 ozone Element NAAQS

(A): Emission limits and other control measures ...... A (B): Ambient air quality monitoring and data system ...... A (C)1: Enforcement of SIP measures ...... A (C)2: PSD program for major sources and major modifications ...... A (C)3: PSD program for minor sources and minor modifications ...... A (D)1: Contribute to nonattainment/interfere with maintenance of NAAQS ...... No action (D)2: PSD ...... A (D)3: Visibility Protection ...... A (D)4: Interstate Pollution Abatement ...... A (D)5: International Pollution Abatement ...... A (E)1: Adequate resources ...... A (E)2: State boards ...... A (E)3: Necessary assurances with respect to local agencies ...... NA (F): Stationary source monitoring system ...... A (G): Emergency power ...... A (H): Future SIP revisions ...... A (I): Nonattainment area plan or plan revisions under part D ...... + (J)1: Consultation with government officials ...... A (J)2: Public notification ...... A (J)3: PSD ...... A (J)4: Visibility protection ...... + (K): Air quality modeling and data ...... A (L): Permitting fees ...... A (M): Consultation and participation by affected local entities ...... A In the above table, the key is as follows: A: Approve. +: Not germane to infrastructure SIPs. No action: EPA is taking no action on this infrastructure requirement. NA: Not applicable.

EPA also is proposing to approve, and Finally, we are proposing to approve Chapter 110, Ambient Air Quality incorporate into the Maine SIP, the a negative declaration for EPA’s 2016 Standards, and conflict-of-interest following Regulation, submitted on May CTG entitled ‘‘Control Techniques provisions in Maine’s 38 MRSA Section 28, 2019, and Statutes, submitted on Guidelines for the Oil and Natural Gas 341. EPA has made, and will continue September 4, 2019: Industry’’ for the 2008 and 2015 ozone to make, these documents generally 06–096 CMR Chapter 110, ‘‘Ambient standards into the Maine SIP. available through https:// Air Quality Standards,’’ effective March EPA is soliciting public comments on www.regulations.gov and at the EPA 27, 2019. the issues discussed in this proposal or Region 1 Office (please contact the on other relevant matters. These FOR FURTHER Maine Public Law 2019, Chapter 180 person identified in the comments will be considered before INFORMATION CONTACT amending 38 MRS Sections 341–C(2) section of this EPA takes final action. Interested parties and 341–C(8) (except 341–C(8)A), preamble for more information). may participate in the Federal effective September 19, 2019. V. Statutory and Executive Order rulemaking procedure by submitting Reviews Maine Public Law 2011, Chapter 357 comments to this proposed rule by amending 38 MRS Section 341–A(3)(D), following the instructions listed in the Under the Clean Air Act, the effective June 15, 2011. ADDRESSES section of this Federal Administrator is required to approve a In addition, we are proposing to Register. SIP submission that complies with the convert to full approvals previous provisions of the Act and applicable conditional approvals of section IV. Incorporation by Reference Federal regulations. 42 U.S.C. 7410(k); 110(a)(2)(E) in Maine’s infrastructure In this rule, EPA is proposing to 40 CFR 52.02(a). Thus, in reviewing SIP SIPs for the 2008 ozone; 2008 Pb; 2010 include in a final EPA rule regulatory submissions, EPA’s role is to approve NO2; 2010 SO2; and 1997, 2006, and text that includes incorporation by state choices, provided that they meet 2012 PM2.5 NAAQS, as well as previous reference. In accordance with the criteria of the Clean Air Act. conditional approvals of section requirements of 1 CFR 51.5, EPA is Accordingly, this proposed action 110(a)(2)(A) in Maine’s infrastructure proposing to incorporate by reference merely approves state law as meeting SIPS for the 1997 and 2006 PM2.5. amendments to Maine’s regulation Federal requirements and does not

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impose additional requirements beyond Nitrogen dioxide, Ozone, Particulate Jefferson Clinton Bldg., Rm. 3334, 1301 those imposed by state law. For that matter, Reporting and recordkeeping Constitution Ave. NW, Washington, DC. reason, this proposed action: requirements, Sulfur oxides, Volatile The Public Reading Room is open from • Is not a significant regulatory action organic compounds. 8:30 a.m. to 4:30 p.m., Monday through subject to review by the Office of Dated: December 2, 2020. Friday, excluding legal holidays. The Management and Budget under telephone number for the Public Dennis Deziel, Executive Orders 12866 (58 FR 51735, Reading Room is (202) 566–1744, and October 4, 1993) and 13563 (76 FR 3821, Regional Administrator, EPA Region 1. the telephone number for the OPPT January 21, 2011); [FR Doc. 2021–00458 Filed 1–21–21; 8:45 am] Docket is (202) 566–0280. • Is not expected to be an Executive BILLING CODE 6560–50–P Due to the public health concerns Order 13771 regulatory action because related to COVID–19, the EPA Docket this action is not significant under Center (EPA/DC) and Public Reading Executive Order 12866; ENVIRONMENTAL PROTECTION Room are closed to visitors with limited • Does not impose an information AGENCY exceptions. The EPA/DC staff continue collection burden under the provisions to provide remote customer service via 40 CFR Chapter I of the Paperwork Reduction Act (44 email, phone, and webform. For the U.S.C. 3501 et seq.); [EPA–HQ–OPPT–2020–0565; FRL–10019– latest status information on EPA/DC • Is certified as not having a 39] services and docket access, visit https:// significant economic impact on a www.epa.gov/dockets. TSCA Section 21 Petition for substantial number of small entities FOR FURTHER INFORMATION CONTACT: Rulemaking; Reasons for Agency under the Regulatory Flexibility Act (5 For technical information contact: Response; Denial of Requested U.S.C. 601 et seq.); Daniel R. Ruedy, Data Gathering and Rulemaking • Does not contain any unfunded Analysis Division (7410M), Office of mandate or significantly or uniquely AGENCY: Environmental Protection Pollution Prevention and Toxics, affect small governments, as described Agency (EPA). Environmental Protection Agency, 1200 in the Unfunded Mandates Reform Act ACTION: Petition; reasons for Agency Pennsylvania Ave. NW, Washington, DC of 1995 (Pub. L. 104–4); 20460–0001; telephone number: (202) • response. Does not have federalism 564–7974; email address: ruedy.daniel@ implications as specified in Executive SUMMARY: This document provides the epa.gov. Order 13132 (64 FR 43255, August 10, reasons for the Environmental For general information contact: The 1999); Protection Agency’s (EPA’s) response to TSCA-Hotline, ABVI-Goodwill, 422 • Is not an economically significant a petition it received under the Toxic South Clinton Ave., Rochester, NY regulatory action based on health or Substances Control Act (TSCA) from the 14620; telephone number: (202) 554– safety risks subject to Executive Order Center for Environmental Health, Cape 1404; email address: TSCA-Hotline@ 13045 (62 FR 19885, April 23, 1997); Fear River Watch, Clean Cape Fear, epa.gov. • Is not a significant regulatory action Democracy Green, Toxic Free NC, and SUPPLEMENTARY INFORMATION: subject to Executive Order 13211 (66 FR the NC Black Alliance on October 14, 28355, May 22, 2001); 2020. Generally, the petitioners I. General Information • Is not subject to requirements of requested that EPA initiate a rulemaking A. Does this action apply to me? Section 12(d) of the National proceeding or issue an order under Technology Transfer and Advancement TSCA compelling health and This action is directed to the public Act of 1995 (15 U.S.C. 272 note) because environmental effects testing on 54 Per- in general. This action, however, may be application of those requirements would and Polyfluoroalkyl Substances (PFAS) of particular interest to those persons be inconsistent with the Clean Air Act; that the petitioners assert are who manufacture (which includes and import), distribute in commerce, • manufactured by The Chemours Does not provide EPA with the Company (Chemours) at its chemical process, use, or dispose of one or more discretionary authority to address, as production facility in Fayetteville, of the 54 Per- and Polyfluoroalkyl appropriate, disproportionate human North Carolina. The petitioners also Substances (PFAS) identified in the health or environmental effects, using request that EPA ask the National petition. Since other entities may also practicable and legally permissible Academy of Sciences to create an be interested, the Agency has not methods, under Executive Order 12898 independent science panel to oversee all attempted to describe all the specific (59 FR 7629, February 16, 1994). aspects of the testing program requested entities that may be affected by this In addition, the SIP is not approved by the petitioners. After careful action. to apply on any Indian reservation land consideration, EPA denied the TSCA B. What is EPA’s authority for taking or in any other area where EPA or an petition for reasons discussed in this this action? Indian tribe has demonstrated that a document. tribe has jurisdiction. In those areas of Under TSCA section 21 (15 U.S.C. Indian country, the rule does not have DATES: EPA’s response to this TSCA 2620), any person can petition EPA to tribal implications and will not impose section 21 petition was signed January initiate a proceeding for the issuance, substantial direct costs on tribal 7, 2021. amendment, or repeal of a rule under governments or preempt tribal law as ADDRESSES: The docket for this action, TSCA sections 4, 6, or 8, or to issue an specified by Executive Order 13175 (65 identified by docket identification (ID) order under TSCA sections 4, 5(e), or FR 67249, November 9, 2000). number EPA–HQ–OPPT–2020–0565, is 5(f). A TSCA section 21 petition must available online at https:// set forth the facts which it is claimed List of Subjects in 40 CFR Part 52 www.regulations.gov or in-person at the establish that it is necessary to initiate Environmental protection, Air Office of Pollution Prevention and the action requested. EPA is required to pollution control, Carbon monoxide, Toxics Docket (OPPT Docket), grant or deny the petition within 90 Incorporation by reference, Environmental Protection Agency days of its filing. If EPA grants the Intergovernmental relations, Lead, Docket Center (EPA/DC), West William petition, the Agency must promptly

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commence an appropriate proceeding. If 26(i) requires that decisions under 2018 Toxicological Profile for EPA denies the petition, the Agency TSCA sections 4, 5, and 6 be ‘‘based on Perfluoroalkyls (Ref. 2) and EPA’s PFAS must publish its reasons for the denial the weight of scientific evidence.’’ Action Plan (Ref. 3), as well as other in the Federal Register. A petitioner TSCA section 26(k) requires that EPA literature, in support of the contention may commence a civil action in a U.S. consider information that is reasonably that exposure to certain, specific PFAS district court seeking to compel available in carrying out TSCA sections are associated with adverse health initiation of the requested proceeding 4, 5, and 6. effects. within 60 days of a denial or, if EPA • EPA’s Significant New Use Rule II. Summary of the TSCA Section 21 (SNUR) for Long-Chain Perfluoroalkyl does not issue a decision, within 60 Petition days of the expiration of the 90-day Carboxylate and Perfluoroalkyl period. A. What action was requested? Sulfonate Chemical Substances (Ref. 4), On October 14, 2020, Center for which states ‘‘[w]hile most studies to C. What criteria apply to a decision on date have focused primarily on PFOS, a TSCA section 21 petition? Environmental Health, Cape Fear River Watch, Clean Cape Fear, Democracy structure-activity relationship analysis 1. Legal Standard Regarding TSCA Green, Toxic Free NC, and the NC Black indicates that the results of those Section 21 Petitions Alliance (petitioners) petitioned EPA to studies are applicable to the entire initiate a rulemaking proceeding or category of PFAS, which includes TSCA section 21(b)(1) requires that PFOS. Available test data have raised the petition ‘‘set forth the facts which it issue an order under TSCA section 4(a)(1)(A)(i), compelling health and concerns about their potential is claimed establish that it is necessary’’ developmental, reproductive, and to initiate the proceeding requested. 15 environmental effects testing, including studies of communities exposed to systemic toxicity.’’ U.S.C. 2620(b)(1). Thus, TSCA section • EPA’s Consent Order regarding PFAS-contaminated drinking water, on 21 implicitly incorporates the statutory DuPont Premanufacture Notices (Ref. 5), 54 PFAS that the petitioners assert are standards that apply to the requested which states in part ‘‘[t]oxicity studies actions. Accordingly, EPA has relied on manufactured by The Chemours Company (Chemours) at its chemical on the analogs PFOA (perfluorooctanoic the standards in TSCA section 21 and in acid) and PFOS the provisions under which actions production facility in Fayetteville, North Carolina. The petitioners also (perfluorooctanesulfonic acid) indicate have been requested in evaluating this developmental, reproductive and TSCA section 21 petition. request that EPA ask the National Academy of Sciences to create an systemic toxicity in various species. 2. Legal Standard Regarding TSCA independent science panel to oversee all Cancer may also be of concern. These Section 4(a)(1)(A)(i) aspects of the testing program requested factors, taken together, raise concerns by the petitioners (Ref. 1). for potential adverse chronic effects in EPA must make several findings in humans and wildlife.’’ order to require testing under TSCA B. What support did the petitioners The petitioners conclude, based on section 4(a)(1)(A)(i) through a rule or offer? the references provided, that ‘‘all PFAS order. EPA must find that the The petitioners assert that TSCA have the potential for causing the manufacture, distribution in commerce, section 4(a)(1)(A)(i) requires EPA to adverse health and environmental processing, use, or disposal of a direct testing on a chemical substance or effects linked to well-characterized chemical substance or mixture, or that mixture if all three of the following substances like PFOS and PFOA any combination of such activities, may findings are made: because of their common structural present an unreasonable risk of injury to • The manufacture, distribution in characteristics,’’ and that ‘‘there is a health or the environment; that commerce, processing, use, or disposal strong basis to conclude that the 54 information and experience are of a chemical substance or mixture, or PFAS covered by this petition ‘may insufficient to reasonably determine or that any combination of such activities, present an unreasonable risk of injury’ ’’ predict the effects of a chemical may present an unreasonable risk of (Ref. 1, pg. 18). substance on health or the environment; injury to health or the environment; 2. Insufficiency of Information and that testing of the chemical • There is insufficient information substance is necessary to develop the and experience upon which the effects The petitioners assert that for these 54 missing information. Further, TSCA of such manufacture, distribution in PFAS, there is insufficient information section 4(h) requires EPA to reduce and commerce, processing, use, or disposal and experience upon which the effects replace the use of vertebrate animals in of such substance or mixture or of any of such manufacture, distribution in the testing of chemical substances or combination of such activities on health commerce, processing, use, or disposal mixtures, to the extent practicable, or the environment can reasonably be of such substance or mixture or of any scientifically justified, and consistent determined or predicted; and combination of such activities on health with the policies of TSCA. • Testing of such substance or or the environment can reasonably be 3. Legal Standard Regarding TSCA mixture with respect to such effects is determined or predicted. To support Section 26 necessary to develop such information. their assertion, the petitioners point to: • ATSDR’s draft 2018 Toxicological TSCA section 26(h) requires EPA, in 1. May Present an Unreasonable Risk of Profile for Perfluoroalkyls (Ref. 2), carrying out TSCA sections 4, 5, and 6, Injury to Health or the Environment which the petitioners assert underscores to make a decision using ‘‘scientific The petitioners assert that the 54 the absence of toxicological data; and information, technical procedures, PFAS ‘‘may present an unreasonable • EPA’s PFAS Action Plan (Ref. 3), measures, methods, protocols, risk of injury to health or the which states ‘‘[t]here are many PFAS of methodologies, or models, employed in environment’’ because there allegedly is potential concern to the public that may a manner consistent with the best substantial evidence that PFAS may be be found in the environment. Most of available science,’’ while also taking toxic, pointing to the following these PFAS lack sufficient toxicity data into account six considerations, documents: to inform our understanding of the including the relevance of information • The Agency for Toxic Substances potential for adverse human or and any uncertainties. TSCA section and Disease Registry’s (ATSDR’s) draft ecological effects.’’

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On page 21 of their petition, the action to identify solutions to address implement the PFAS Action Plan, EPA petitioners assert: ‘‘[k]ey data gaps PFAS in the environment. Examples of is committed to coordinating closely include measurement of physical- such ongoing actions are detailed in this with multiple entities, including other chemical properties, methods of unit. federal agencies, states, tribes, local analysis, assessment of partitioning, governments, water utilities, industry, A. PFAS Action Plan: Program Update bioaccumulation, and degradation, and the public. pharmacokinetics, and toxicity, In May 2018, EPA convened a two- B. Interim Strategy for PFAS in especially for the endpoints commonly day National Leadership Summit on Federally Issued National Pollutant observed for the better studied PFAS, PFAS that brought together more than Discharge Elimination System (NPDES) such as liver toxicity, and effects on the 200 federal, state, and local leaders to Permits immune system, lipid metabolism, discuss steps to address PFAS. The kidney, thyroid, development, Summit set the following goals: EPA’s Office of Water (OW) is reproduction, and cancer. In addition, Evaluate the need for a maximum currently leading multiple actions in the despite their widespread detection in contaminant level for PFOA and PFOS PFAS Action Plan that will help the environmental media, ecotoxicity data in drinking water, evaluate designating Agency better understand and are generally lacking.’’ PFOA and PFOS as hazardous effectively manage risk from exposure to substances, issue groundwater cleanup PFAS. These OW-led actions include 3. Need for Testing guidances for PFOA and PFOS, and developing analytical methods for The petitioners assert that the develop toxicity values for GenX and detecting PFAS in drinking water and mechanisms of PFAS toxic effects are perfluorobutane sulfonic acid (PFBS). other environmental media, evaluating not defined, and that in vitro assays or Following the Summit, EPA interacted PFAS treatment techniques, conducting other predictive, computational with more than 1,000 people during data collection and analysis to evaluate approaches are not validated or PFAS-focused community engagement the need for regulations to control PFAS available. The petitioners also request events in Exeter, New Hampshire; discharges from certain categories of animal toxicity studies on three Horsham, Pennsylvania; Colorado point sources, understanding PFAS mixtures of PFAS that are allegedly Springs, Colorado; Fayetteville, North exposure from various environmental representative of exposure for residents Carolina; and Leavenworth, Kansas, as media, and evaluating statutory and in the Cape Fear Watershed. well as through a roundtable in regulatory mechanisms to manage Finally, the petitioners request Kalamazoo, Michigan, and an event adverse human health and ecotoxicity studies, and studies of with tribal representatives in Spokane, environmental impacts from PFAS physical chemical properties and Washington. As a result of these exposure. environmental fate and transport, which meetings and building on the goals While OW’s work is advancing, a they say EPA ‘‘has previously identified at the Summit and the need for an interim strategy to address determined are necessary because of the approximately 120,000 public point source discharges of PFAS in widespread presence and mobility of comments received by the agency, EPA EPA-issued NPDES permits was PFAS in environmental media.’’ developed the PFAS Action Plan, which identified. On February 6, 2020, a was issued in February 2019 (Ref. 3). workgroup was established to develop 4. Testing Framework and Specific The PFAS Action Plan is the first an interim NPDES permitting strategy to Studies multi-media, multi-program, national address PFAS in EPA-issued CWA The petitioners propose a testing research, management, and risk section 402 permits. The workgroup was approach that they call for Chemours to communication plan to address an charged with exploring options for how perform. The list of 54 PFAS was emerging contaminant like PFAS. The to address these pollutants while the divided into Tier 1 substances for which PFAS Action Plan outlines the tools CWA framework for addressing PFAS there is ‘‘known human exposure based EPA is developing to, among other discharges pursuant to the NPDES on detection in blood, food, or drinking things, address PFAS in drinking water, program is under development. The water,’’ and Tier 2 substances for which identify and clean up PFAS workgroup’s goal was to develop a ‘‘human exposure is probable based on contamination, expand monitoring of strategy that would serve to guide the detection in environmental media’’ (Ref. PFAS, increase PFAS scientific Agency’s CWA NPDES permitting 1, pg.12). The testing approach includes research, and exercise effective approach on an interim basis across the human health effects studies in enforcement tools. The Action Plan EPA Regions as informed by input from experimental animals, animal studies on outlines EPA’s commitment to take a state partners. Each of the ten EPA PFAS mixtures, studies of communities wide variety of actions to address this Regions appointed a representative to exposed to PFAS-contaminated drinking emerging contaminant in both short- the workgroup. water, human half-life studies, physical- term and long-term timeframes. To develop potential chemical properties and fate and Together, these efforts are helping EPA recommendations for an interim PFAS transport studies, and ecotoxicity and its partners identify and better NPDES strategy, the workgroup testing. understand PFAS contaminants conducted a thorough review of the generally, clean up current PFAS NPDES permitting process, with a III. Background Considerations: Review contamination, prevent future specific focus on PFAS. This included of EPA Actions, Activities, and contamination, and effectively examining CWA section 402 authorities Regulations Relating to PFAS communicate risk with the public. In and permit writing practices to To understand EPA’s reasons for February 2020, EPA issued the PFAS understand where unregulated denying the petitioners’ requests, it is Action Plan: Program Update (available contaminants, such as PFAS, may fit important to first review the details of at https://www.epa.gov/pfas/pfas- into the permit development process; EPA’s ongoing actions involving PFAS. action-plan-program-update-february- analyzing existing state-issued NPDES EPA is committed to supporting states, 2020) to provide an update on all of the permits with PFAS monitoring tribes, and local communities in actions taken and work completed in requirements (identified through EPA’s addressing challenges with PFAS. As a the year since the PFAS Action Plan NPDES Integrated Compliance part of this effort, EPA is already taking was issued. As it continues to Information System (ICIS)) to

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understand the prescribed analytical appropriate steps to reduce exposure to industry altogether. All participating methods for detecting PFAS, monitoring PFOA and PFOS in drinking water. companies state that they met the PFOA frequency, and detection benchmarks in Stewardship Program goals. In July 2020 E. National Primary Drinking Water current permits; and obtaining input EPA codified and expanded the impact Regulation for PFOA and PFOS and perspectives from state partners. In of the PFOA Stewardship program November 2020, EPA issued a memo On March 10, 2020, EPA published a through the issuance of the long chain detailing an interim NPDES permitting notice (85 FR 14098, FRL–10005–88) PFAS SNUR, as discussed in Unit III.H. strategy for PFAS. This strategy is being seeking comment on proposed determinations to regulate PFOA and G. Addition of Certain PFAS to the implemented for EPA-issued NPDES Toxics Release Inventory (TRI) permits. PFOS. EPA is considering the public comments on this notice and expects to Regulations C. Workshop on Federal Government issue final regulatory determination in The National Defense Authorization Human Health PFAS Research With the January 2021. If EPA issues final Act for Fiscal Year 2020 (NDAA) (Pub. National Academies of Sciences, determinations to regulate PFOA and L. 116–92) added certain PFAS to the Engineering and Medicine PFOS, SDWA requires that the EPA list of chemicals required to be reported On October 26–27, 2020, the National publish a proposed regulation within 24 to the TRI and established a 100-pound Academies of Science, Engineering, and months of the final determination and reporting threshold for these substances. Medicine (NASEM) held a Workshop on promulgate a final regulation within 18 EPA’s TRI is an important tool that Federal Government Human Health months of proposal (SDWA allows the provides the public with information PFAS Research. This workshop was the Agency to extend that final rule about the use of certain chemicals by result of collaboration between EPA, the deadline by 9 months). tracking their management and Under the third Unregulated U.S. Department of Defense (DoD), the associated activities. U.S. facilities in Contaminant Monitoring Rule (UCMR 3) U.S. Department of Agriculture (USDA), different industry sectors must report (85 FR 26072, FRL–9660–4), from 2013 and the U.S. Department of Health and annually how much of each chemical is to 2015, EPA required almost 5,000 released to the environment and/or Human Services (HHS) and will help public water systems to monitor for six managed through recycling, energy further coordinate PFAS research across PFAS (see https://www.epa.gov/ recovery, and treatment. TRI helps the federal government. Aggressively dwucmr/third-unregulated- support informed decision-making by addressing PFAS has been an active and contaminant-monitoring-rule). The companies, government agencies, non- ongoing priority for this Administration, results of this monitoring were used by governmental organizations and the and the goal of the workshop was to EPA in making the proposed regulatory public. For example, EPA uses TRI discuss ongoing federal research and determination for PFOA and PFOS. EPA information to understand releases and data gaps. Following the workshop, has committed to monitoring for more potential exposures to chemicals being NASEM will compile a report PFAS in the UCMR 5 and at lower levels assessed under TSCA. summarizing the discussion and views than was possible under the UCMR 3. In June 2020, the Agency published a of workshop participants on how to EPA expects to publish a proposed final rule (85 FR 37354, June 22, 2020; ensure that the federal research program UCMR 5 in January 2021. FRL–10008–09) that updated the for PFAS is robust and focused on regulations to reflect the addition of addressing the highest priority human F. PFOA Stewardship Program these PFAS to the TRI by the NDAA. Per health research. Workshop proceedings EPA launched the PFOA Stewardship the NDAA requirements, the PFAS will be published in early 2021. Program (Ref. 7) in January, 2006 additions became effective as of January D. Safe Drinking Water Act (SDWA) because of concerns about the impact of 1, 2020. Reporting for these PFAS will Actions for PFOA and PFOS PFOA and long-chain PFAS on human be due to EPA by July 1, 2021, for health and the environment, including calendar year 2020 data. By July 31, EPA has taken a number of actions concerns about their persistence, 2021, EPA expects to release raw data under SDWA, consistent with the PFAS presence in the environment and in the concerning the TRI-listed PFAS from Action Plan and its statutory and blood of the general U.S. population, information collected. Additionally, the regulatory authorities. In 2016, EPA long half-life in people, and NDAA provides a framework for established health advisories for PFOA developmental and other adverse effects additional PFAS to be added and PFOS (Ref. 6) based on the Agency’s in laboratory animals. automatically to the TRI list on January assessment of the latest peer-reviewed By March 1, 2006, the eight major 1 of the year following certain EPA science to provide drinking water companies in the PFAS industry actions (NDAA section 7321(c)). For system operators, and state, tribal and submitted commitments to the PFOA example, the NDAA automatically adds local officials who have the primary Stewardship Program. Specifically, a PFAS to the TRI list in response to the responsibility for overseeing these these companies committed to reducing EPA finalizing a toxicity value for it. systems, with information on the health PFOA from facility emissions and risks of these chemicals, so they can product content by 95 percent no later H. Regulatory Actions Under TSCA take the appropriate actions to protect than 2010, and to work toward EPA has taken a range of regulatory their residents. To provide Americans, eliminating PFOA from emissions and actions under TSCA to address potential including the most sensitive product content no later than 2015. The exposures and/or risks associated with populations, with a margin of protection companies participating in the PFOA manufacturing, processing, and use of from a lifetime of exposure to PFOA and Stewardship Program were global PFAS. EPA’s New Chemicals program PFOS from drinking water, EPA companies with business operations in reviews alternatives for PFOA and established the health advisory levels at the United States and other countries. related chemicals before they enter the 70 parts per trillion. To meet the program goals, most marketplace to identify whether the EPA is committed to following the companies stopped the manufacture and range of toxicity, fate and regulatory process established under import of long-chain PFAS, and then bioaccumulation issues that have SDWA and supporting states and public transitioned to alternative chemicals. caused past concerns with water systems as they determine the Other companies exited the PFAS perfluorinated substances may be

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present in order to ensure that the new • On October 22, 2013, EPA issued a Innovative Treatment Team (PITT) in chemicals do not present an final SNUR (Ref. 11) for certain PFOA- spring 2020. The PITT was a full-time, unreasonable risk to health or the related chemicals as part of carpets, a multi-disciplinary research team that environment. category of potentially harmful concentrated their efforts and expertise TSCA Section 5(a) SNURs can be used chemicals once used on carpets to on a single problem for six months: How to require notice to EPA before chemical impart soil, water, and stain resistance. to remove, destroy, and test PFAS- substances and mixtures are used in • On July 27, 2020, EPA issued a final contaminated media and waste. The new ways that might create concerns. SNUR (Ref. 12) for certain PFOA-related PITT’s goals were to: Under TSCA section 5(a), EPA can chemicals. The SNUR modifies the • Assess current and emerging determine that a use of a chemical requirements for a subset of LCPFAC destruction methods being explored by substance is a ‘‘significant new use.’’ chemical substances in the existing EPA, universities, other research EPA must make this determination by SNUR at 40 CFR 721.10536 in the organizations, and industry; rule after considering all relevant following ways: (1) Designating • Explore the efficacy of destruction factors, including those listed in TSCA manufacturing (including importing) or methods while considering by-products section 5(a)(2): processing of LCPFAC chemical to avoid creating new environmental • substances listed in the list of LCPFAC Projected volume of manufacturing hazards; and and processing of a chemical substance. chemical substances for any use that • • Extent to which a use changes the was no longer ongoing after December Evaluate destruction methods’ type or form of exposure of humans or 31, 2015, as a significant new use; and feasibility, performance, and costs to the environment to a chemical (2) Designating manufacturing validate potential solutions. substance. (including importing) or processing of This work initiated under the PITT • Extent to which a use increases the PFOA or its salts, which are considered will add practical knowledge to EPA’s magnitude and duration of exposure of LCPFAC chemical substances, and all efforts under the PFAS Action Plan. humans or the environment to a other LCPFAC chemical substances for States, tribes, and local governments chemical substance. any use not ongoing as of January 21, will be able to use this information to • Reasonably anticipated manner and 2015, the date on which the proposed select the approach that best fits their methods of manufacturing, processing, rule was published, as a significant new circumstances, leading to greater distribution in commerce, and disposal use. For this final SNUR, EPA also made confidence in cleanup operations and of a chemical substance. an exemption at 40 CFR 721.45(f) safer communities. Once EPA designates a use of a inapplicable for persons who import Besides the innovative work of PITT, chemical substance as a significant new LCPFAC chemical substances listed in EPA and its researchers continue to use, TSCA section 5(a) requires persons the list of LCPFAC chemical substances work hard in many other areas to help to submit a significant new use notice in this unit and PFOA or its salts as part the nation address PFAS and protect (SNUN) to EPA at least 90 days before of a surface coating on articles because public health. This work includes: they manufacture (including import) or there is reasonable potential for • Validating methods to detect and process the chemical substance for that exposure to LCPFAC chemical quantify PFAS in various environmental use. The SNUN obligates EPA to assess substances, including PFOA, if these media, such as water, air, and biosolids. risks that may be associated with that chemical substances are incorporated as EPA has already released a number of significant new use, including risks to surface coatings in articles and then these methods, including Methods 533 potentially exposed or susceptible imported. and 537.1 that together can measure 29 subpopulations identified as relevant by In addition, in December 2020, EPA PFAS in drinking water; EPA under the conditions of use; make issued draft guidance (Ref. 13) for • Evaluating treatment technologies a determination under the statute; and, public comment outlining which that remove PFAS from drinking water. if appropriate, regulate the proposed imported articles are covered by the July For example, researchers are activity before it occurs. 2020 final rule for certain long-chain investigating the effectiveness of point- EPA has issued the following SNURs PFAS. After considering comments, of-use systems and have recently for PFOS and PFAS: EPA intends to issue the final guidance published research on commercially • On March 11, 2002, EPA issued a promptly. available systems that use both reverse final SNUR (Ref. 8) for 13 PFAS PFOS was not reported as osmosis and granular activated carbon; specifically included in the voluntary manufactured (including imported) into • phase out of PFOS by 3M that took the United States as part of the 2012 Developing standard human health place between 2000 and 2002. Chemical Data Reporting (CDR) effort or toxicity reference values for certain • On December 9, 2002, EPA issued the previous collection effort in 2006. PFAS. For example, Agency scientists a final SNUR (Ref. 9) for 75 PFAS CDR requires manufacturers (including are working on a toxicity assessment for specifically included in the voluntary importers) to report if they meet certain PFBS, GenX chemicals, and five other phase out of PFOS by 3M that took production volume thresholds, PFAS that will help states, tribes, and place between 2000 and 2002. generally 25,000 lbs at a single site. The local communities understand the • On October 9, 2007, EPA issued a last time PFOS manufacture was toxicity of these substances so that they final SNUR (Ref. 10) for 183 PFAS that reported to EPA as part of this collection can make more informed choices to were on the public TSCA Inventory and protect the public’s health; effort was 2002; nonetheless, there are • have the characteristic PFAS chemical some limited ongoing uses of PFOS (see Providing technical assistance to structure of a perfluorinated carbon 40 CFR 721.9582). states and tribes as they work to address chain (Rf) greater than, or equal to, C5 a variety of PFAS challenges; and I. Increasing Research and attached to an SO2 group connected to • Funding external researchers to the rest of the molecule. In addition, the Understanding PFAS better understand the potential impacts proposal also included those chemicals Building on the work outlined in the of PFAS on water quality and with Rf ranges of perfluorinated carbon February 2019 PFAS Action Plan, the availability in rural communities and chains shorter than C5, and greater than Agency expanded its research efforts agricultural operations across the C5, for example, C4–C12 and C6–C12. and capabilities by launching the PFAS United States.

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IV. Disposition of TSCA Section 21 experience’’ for each of the 54 PFAS. as to what ‘‘pattern’’ the 54 PFAS fit, Petition The petitioners state, in part, ‘‘[f]or the and no other sources are provided. 54 PFAS, the sufficiency of available Absent any factual support in the A. What was EPA’s response? information should be determined by petition, EPA finds that mere reference After careful consideration, EPA has comparing available data with the to these broad statements from the EPA denied the petition. A copy of the known adverse effects of other PFAS. PFAS Action Plan and ATSDR’s 2018 Agency’s response, which consists of The goal should be to conduct a Toxicological Profile for perfluoroalkyls the letter to the petitioners and this scientifically sound assessment of each does not provide the facts necessary for document, is posted on the EPA petition of the 54 chemicals for the critical toxic the Agency to determine there is website at https://www.epa.gov/ endpoints that have been identified in insufficient information or experience assessing-and-managing-chemicals- studies on PFOS, PFOA and other well- for these 54 PFAS. under-tsca/tsca-section-21#reporting. characterized studies’’ (Ref. 1, pg. 21). To further characterize this baseline The response, the petition (Ref. 1) and However, the petitioners do not provide deficiency, EPA performed a cursory other information is available in the evidence that they conducted an search of public literature and databases docket for this TSCA section 21 petition assessment to support a finding of for reasonably available information on (see ADDRESSES). insufficient information and experience. any of the 54 PFAS identified by the The denial is not based on lack of petitioners. Representative findings of The petitioners instead point to broad concern with PFAS. In fact, EPA’s high this cursory review are summarized as statements in the EPA PFAS Action concern for these chemicals is detailed follows: Plan, such as ‘‘[t]here are many PFAS of in Unit III. of this document. EPA is • On June 8, 1987, EPA issued a Final potential concern to the public that may leading the national efforts to Test Rule for Fluoroalkenes (Ref. 14) be found in the environment. Most of understand PFAS and reduce PFAS requiring testing for certain health these PFAS lack sufficient toxicity data risks to the public through effects for four fluoroalkenes, two of to inform our understanding of the implementation of its PFAS Action Plan which are among the 54 PFAS the potential for adverse human or and through active engagement and petitioners identify: ecological effects’’ (Ref. 3, pg. 31). The partnership with other federal agencies, Hexafluoropropylene (CAS No. 116–15– petitioners base the fate and transport states, tribes, industry groups, 4) and tetrafluoroethylene (CAS No. studies they request on EPA’s PFAS associations, local communities, and the 116–14–3). The petitioners do not Action Plan, which the petitioners quote public. Instead, EPA finds the identify this test rule and the testing it as stating ‘‘information for many PFAS petitioners have not met their burden required, nor do the petitioners explore sources, fate and transport, and human under TSCA section 21, as explained in and explain why the testing the rule and ecological exposure is sparse, both Unit IV.B. of this document. ordered did not generate the health spatially and temporally’’ (Ref. 3, pg. effects data the petitioners are now B. What was EPA’s reason for this 31). However, the PFAS Action Plan requesting. response? broadly states only that such • EPA’s web-based CompTox In considering the petition within the information for ‘‘many PFAS sources’’ is Chemistry Dashboard integrates various statutory 90-day petition review period, sparse; nowhere does it state or types of data for curated substances EPA evaluated the information conclude that such information is sparse linked to chemical structures, including presented or referenced in the petition for each of the 54 PFAS the petitioners physicochemical, environmental fate and considered that information in the identify. To further demonstrate that the and transport, exposure, usage, in vivo context of the applicable authorities and information and experience on the 54 toxicity, and in vitro bioassay data (Ref. requirements contained in TSCA PFAS is allegedly insufficient, the 15). A query for some of the 54 PFAS sections 4, 21, and 26. Also, petitioners cite ATSDR’s 2018 in CompTox returned physical/chemical notwithstanding that the burden is on Toxicological Profile for perfluoroalkyls, property and hazard data. For example, the petitioners to present ‘‘the facts which the petitioners acknowledge CompTox has published experimental which it is claimed establish that it is ‘‘identifies numerous critical data gaps averages for melting point, boiling necessary’’ for EPA to initiate the rule for PFAS as a class’’ (emphasis added). point, water solubility, and vapor or issue the order sought, EPA The ATSDR 2018 Toxicological Profile pressure, and some hazard data and nonetheless also evaluated relevant for perfluoroalkyls remains in draft form sources for tetrafluoroethylene (CAS No. information that was reasonably and discusses information on 14 116–14–3). CompTox also has published available to the Agency during the 90- perfluoroalkyl compounds, none of some hazard data for day petition review period. which are among the 54 the petitioners hexafluoropropylene (CAS No. 116–15– As detailed extensively in the units identify. Importantly, the ATSDR 2018 4) and perflouromethylperfluorovinyl that follow, EPA finds the petitioners Toxicological Profile further states that ether (CAS No. 1187–93–5). Finally, have not provided the facts necessary ‘‘[t]he term ‘perfluoroalkyls’ used some physical/chemical data for for the Agency to determine for each of throughout the toxicological profile is perfluoro (4-methyl-3, 6- dioxaoct-7- the 54 PFAS that existing information referring to these 14 compounds and the ene) sulfonyl fluoride (CAS No. 16090– and experience are insufficient and information may not be applicable to 14–5) are also readily available. The testing of such substance or mixture other perfluoroalkyl compounds’’ (Ref. petitioners mention none of these data, with respect to such effects is necessary 2, pg. 1). Despite this qualifying nor have they provided the facts to develop such information. These statement, the petitioners proceed to necessary to show that the information deficiencies, among other findings, are state without reference or additional in CompTox is insufficient. detailed in this document. explanation that ‘‘[t]he 54 substances • ChemView provides the public covered by this petition fit this pattern’’ access to reports and dataset 1. Insufficient Information and (Ref. 1, pg. 21). This extrapolation is information including data submitted to Experience fundamentally important to the EPA, EPA Assessments and Actions, The petition does not set forth the petitioners’ argument, yet there are no and data provided by other EPA Offices facts necessary to demonstrate that there facts in the petition to support the and federal organizations (Ref. 16). A is ‘‘insufficient information and statement. The petitioners are not clear query for each of the 54 PFAS in

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ChemView returned records for 17 of For the reasons described in this PFAS such as PFOA and PFOS will be the 54 PFAS. For example, for document, EPA finds the petition does included to help put findings for data- perflouromethylperfluorovinyl ether not set forth facts necessary to poor chemicals in better context. Data (CAS No. 1187–93–5), a substantial risk demonstrate ‘‘insufficient information sets will support development of read- report is available from DuPont Haskell and experience’’ for each of the 54 across and category approaches for this Global Centers on reproduction/ PFAS, and has therefore not class of chemicals. developmental toxicity screening tests demonstrated that the rule or order • Bioactivity of PFAS as determined (OECD 422/OPPTS 870.3650, one of the requested is necessary. using gene expression and in vitro methods identified in the petitioners’ cellular pathology is another area of 2. Testing of Such Substance or Mixture testing program) in rats (Ref. 17). The ongoing research at EPA. This research With Respect to Such Effects Is petitioners do not mention this report, will apply broad-based high-content Necessary To Develop Such Information nor do they explain why the report fails screening assays to characterize the to provide the data being sought. In this The petitioners do not demonstrate bioactivity of a set of PFAS in multiple way, the petitioners once again have not ‘‘testing of such substance or mixture human cell types. The resulting dataset provided the facts necessary to show with respect to such effects is necessary will contribute to an overall assessment that the information in ChemView is to develop such information.’’ EPA of the effects of PFAS on important insufficient. finds that the petitioners failed to physiological functions that overlap • Tetrafluoroethylene (CAS No. 116– address ongoing testing and data with effects measured in the testing the 14–3) is pre-registered under the collections for some of the 54 PFAS, petitioners requested. Registration, Evaluation, Authorisation thereby failing to set forth facts that are • ORD will also conduct high- and Restriction of Chemicals (REACH) necessary to establish there is a need for throughput in vitro testing of PFAS to regulation. The European Chemicals the testing sought in the petition. This fill data gaps and refine structural and Agency (ECHA) has compiled chemical/ research may provide information that mechanistic groupings. This project falls physical property data (partition overlaps with testing the petitioners under the Human Health Testing/ coefficient, potential for requested, which would render the Toxicokinetics research area that will bioaccumulation, etc.) for this PFAS. information unnecessary under TSCA generate and analyze a large data set on Hexafluoropropylene (CAS No. 116–15– section 4(a)(1)(A)(i)(III). Testing, both ∼150 PFAS using a variety of New 4) is also pre-registered under REACH, planned and underway, on some of the Approach Methodologies (NAMs) in and ECHA has compiled some 54 PFAS that the petitioners identify is support of EPA’s mission to manage and chemical/physical property data for this described in this unit: regulate PFAS. This research effort will PFAS. The petitioners mention none of • Five of the 54 PFAS have been add a dataset of NAMs testing results for these data, nor have they provided the subjected to all Tier 1 in vitro, 15 PFAS. Selection of these 15 facts necessary to show that this toxicokinetic, and clearance studies: chemicals will be driven by the initial information is insufficient. Hepatotoxicity, developmental toxicity, analysis of the 150 chemicals and TSCA section 21 requires the immunotoxicity, mitochondrial toxicity, provide the ability to fill identified data petitioner, not EPA, to ‘‘set forth the developmental neurotoxicity, endocrine gaps and potentially test hypotheses facts which it is claimed establish that disruption, general toxicity, intrinsic developed from the initial analysis. it is necessary to issue, amend, or repeal hepatic clearance, plasma protein Testing of these 15 PFAS will include a rule under TSCA sections 4, 6, or 8, binding (PPB), and renal reuptake. transcription factor activity profiling; or an order under TSCA sections 4 or These studies are ongoing and results estrogen-dependent cell proliferation; 5(e).’’ Because EPA, upon a cursory are expected by April 2021. Data are high-content, cellular phenotypic review, has been able to easily identify expected to be available via the PFAS imaging; high-throughput existing, reasonably available Dashboard by the end of June 2021. transcriptomics; zebrafish embryo information not mentioned in the • An additional six of the 54 PFAS development; and developmental petition, the petitioners have failed in have results from some Tier 1 in vitro neurotoxicity. The results will support carrying their burden of setting forth testing. Two have been included in the overarching EPA PFAS research to: facts which are necessary to systematic evidence mapping (SEM), a (1) Develop a hierarchical scheme of demonstrate that there is insufficient systematic review approach used to chemical structural categories that are information, thereby necessitating the identify available data and characterize enriched by NAM data; (2) Use requested action. knowledge gaps. categories as predefined neighborhoods For one of the 54 PFAS, identified • Three of the 54 PFAS have in vivo to evaluate degree of concordance in only as N1AF, the petitioners provide data identified from a non-EPA source. NAM results within categories and no structurally-descriptive chemical In addition, the following studies are across categories as a means to infer in name, structure, or molecular formula. planned or in process by EPA’s Office vivo toxicity; (3) Predict categorization Absent such identifying information, of Research and Development (ORD). of larger PFAS inventory and read- the petitioners have not provided the • ORD will test for nuclear receptor across coverage; and (4) Recommend facts necessary to determine whether and stress gene responses of a PFAS further in vivo testing for PFAS there is ‘‘insufficient information or library in HepG2 cells. This research categories. experience’’ for this chemical. will apply a high-throughput assay for • In the FY2020 Further Consolidated Because the petitioners are seeking transcription factor activation to Appropriations Act (Pub. L. 116–94), tests for each of the 54 PFAS, the screening the first and second PFAS Congress appropriated funds for EPA to petitioners must set forth facts that screening sets totaling 150 samples. address research needs in support of establish it is necessary to pursue the Additional samples may be added to designating PFAS as hazardous rule or issue the order the petitioners meet developing needs. This assay substances under CERCLA. The research seek under TSCA section 4. The platform contains known targets of needed to help support this designation petitioners must affirmatively several PFAS including the estrogen include: Chemical and physical demonstrate, through facts, that there is receptor and peroxisome proliferator- characteristics of PFAS; Toxicity and ‘‘insufficient information and activator receptors, as well as many kinetic information; environmental experience’’ for each of the 54 PFAS. other potential targets. Well-studied prevalence; Manufacturing and use

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information; and Information on the necessary to develop information on scientific justification for why a class- regulatory status of PFAS. This ongoing health or environmental effects. The based approach is appropriate and research will add significantly to petitioners’ attempt to avoid duplicative necessary for all PFAS.’’ Because the currently available hazard information testing as a result of the Chemours petitioners acknowledge the 54 PFAS for PFAS that could be used for this North Carolina consent decree, but no share similarities with other members of designation, as well as for risk other duplicative testing, further the class, and the petitioners do not assessment use broadly by Program emphasizes their failure to address explore these similarities as a means of Offices. readily available information streamlining the extent of the testing NDAA section 7351 amended TSCA concerning the other activities EPA has requested, or to inform the petitioners’ section 8(a) to include a one-time identified in this unit. ‘‘tiered screening and testing process,’’ reporting event of PFAS manufactured EPA finds the petitioners have not 3. Class-Based Approach to Testing (including imported) in any year since provided the facts necessary to January 1, 2011. TSCA section 8(a)(7) TSCA section 4(h)(1)(B)(ii) determine, for each of the 54 PFAS, that authorizes EPA to collect ‘‘[a]ll existing ‘‘encourage[s]’’ EPA to consider ‘‘the ‘‘testing of such substance or mixture information concerning the grouping of 2 or more chemical with respect to such effects is necessary environmental and health effects of substances into scientifically to develop such information.’’ such substance or mixture.’’ Under this appropriate categories in cases in which Therefore, they have not demonstrated rule, EPA may collect information that testing of a chemical substance would that the rule or order they requested is overlaps with some of the information provide scientifically valid and useful necessary. requested by petitioners. A final TSCA information on other chemical section 8(a) rule for these PFAS must be substances in the category.’’ 4. Practicability of National Academy of issued by January 1, 2023, and EPA has Accordingly, EPA is currently Sciences Oversight initiated the relevant rulemaking investigating ways to group similar The petitioners also request that the process for the proposed rule that is PFAS by likeness into subcategories for National Academy of Sciences (NAS) expected to be issued in 2021. purposes of research, data collection, oversee all aspects of the proposed The petitioners also call for an hazard determinations, and other testing program. EPA finds such an epidemiologic study consisting of activities (Ref. 18). EPA and the oversight arrangement is not within the 100,000 participants from communities National Toxicology Program scope of what a TSCA section 21 exposed to PFAS-contaminated drinking collaborated to construct a PFAS petitioner can request when seeking the water. A similar, multi-site health study screening library subset composed of 75 initiation of a rule or the issuance of an is being implemented through the PFAS on a structural category basis and order under TSCA section 4. Further, Centers for Disease Control and considerations such as structural projects and studies must meet certain Prevention and ATSDR cooperative diversity within a category, data conditions for the NAS to accept private agreements. As ATSDR states, availability, and read-across category- funding. As an example, NAS does not ‘‘[i]nformation learned from the multi- level weight (e.g., value of substance for generally oversee studies where the site study will help all communities in anchoring read-across trends within a study sponsor would have a direct the U.S. with PFAS exposures, category, serving as an analog); four of financial interest in the outcome of the including those that were not part of the the 54 PFAS the petitioners identify are testing program. EPA is not in a position study.’’ The petitioners mention this included in this subset (Ref. 19). The to require NAS to oversee the testing multi-site study but provide no analysis petitioners mention this effort, but requested by the petitioners, and the of overlap or what testing might be incorrectly state that just two of the 54 petitioners provide no administrative or duplicative with what is proposed and PFAS the petitioners cover are included organizational procedures for thus might not be necessary, whether in the EPA testing (Ref. 1, pg. 22). implementation. based on community characteristics, The petitioners take the opposite 5. Selection of PFAS for Health and demographics, specific PFAS or approach, requesting testing on each of Environmental Effects Testing mixture, or levels of exposure. the 54 PFAS individually. The For some of the 54 PFAS, only a petitioners fail to address why a class- Attachment 2 of the petition divides degradant is detected in the Cape Fear based approach is not appropriate, the 54 PFAS at issue into Tier 1 River per the information provided by while also indirectly referring to the substances ‘‘for which there is known petitioners, not the parent chemical for efforts to address PFAS as a class. For human exposure based on detection in which the petitioners have requested example, the petitioners allege that blood, food or drinking water,’’ and Tier testing. The petitioners have not conclusions about all 54 PFAS can be 2 substances ‘‘for which human identified why it is necessary to test the based on the ATSDR 2018 Toxicological exposure is probable based on detection parent chemicals and not the degradants Profile even though none of the 54 in environmental media.’’ However, the actually detected in the Cape Fear River. PFAS are addressed in the toxicological petitioners do not set forth facts For example, the petitioners do not profile, and concedes that the ATSDR showing that for all 40 PFAS it ranks as demonstrate that testing of the parent 2018 Toxicological Profile ‘‘identifies Tier 2 substances, ‘‘human exposure is chemical would identify effects relevant numerous critical data gaps for PFAS as probable based on detection in to the degradants. a class’’ (emphasis added). environmental media’’ or that ‘‘a strong The petitioners specifically identify Additionally, among the references inference of exposure can be drawn and acknowledge that ‘‘5 of the 54 listed allegedly supporting the assertion that from their presence in surface water, chemicals in this petition are also PFAS present serious health and stormwater, wastewater, sediment, designated for testing in the Chemours environmental concerns, the petitioners groundwater, soil, private wells, and/or North Carolina consent decree. These cite a commentary entitled ‘‘Scientific air emissions’’ (Ref. 1, pg. 19). The tests would not need to be replicated in Basis for Managing PFAS as a Chemical petitioners support their assertion that response to this petition’’ (Ref. 1, pg. Class’’ (Ref. 20). This commentary some of the Tier 2 PFAS were detected 30). EPA finds this avoidance of acknowledges PFAS ‘‘demand a more in environmental media with two duplicative testing tacitly acknowledges efficient and effective approach’’ when studies (Ref. 21, 22); for nine of these, that for these five PFAS, testing is not it comes to testing and seeks to ‘‘provide no other studies are provided for

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inclusion based on presence in C. What was EPA’s conclusions? chemicals-under-tsca/fact-sheet-20102015- pfoa-stewardship-program. environmental media (Ref. 1, EPA denied the request to initiate a Attachment 2). Three of these nine 8. EPA. Final Rule; Perfluoroalkyl rule or issue an order under TSCA Sulfonates; Significant New Use Rule. PFAS were not directly detected in the section 4 because the TSCA section 21 Federal Register. 67 FR 11008, March 11, two studies. Further, for some of these petition does not set forth the facts 2002 (FRL–6823–6). nine PFAS, only degradant products necessary for the Agency to determine 9. EPA. Final Rule; Perfluoroalkyl were detected in the Cape Fear River; for each of the 54 PFAS that existing Sulfonates; Significant New Use Rule. the parent compounds the petitioners information and experience are Federal Register. 67 FR 72854, December 9, specifically identify for testing were not. 2002 (FRL–7279–1). insufficient and testing of such 10. EPA. Final Rule; Perfluoroalkyl Thus, for nine of the 54 PFAS, the substance or mixture with respect to Sulfonates; Significant New Use Rule. petitioners provide weak or no evidence such effects is necessary to develop Federal Register. 72 FR 57222, October 9, for presence in environmental media such information. Therefore, the 2007 (FRL–8150–4). upon which to base its ‘‘strong inference petitioners have not demonstrated that 11. EPA. Final Rule; Perfluoroalkyl of exposure’’ assertion (Ref. 1, pg. 19). the rule or order they requested is Sulfonates and Long-Chain Perfluoroalkyl necessary. Carboxylate Chemical Substances; Final 6. Scientific Standards Significant New Use Rule. Federal Register. V. References 78 FR 62443, October 22, 2013 (FRL–9397– EPA finds the petitioners have not 1). The following is a listing of the 12. EPA. Final Rule; Long-Chain evaluated the quality of the data they documents that are specifically have provided or indicated how they Perfluoroalkyl Carboxylate and referenced in this document. The docket Perfluoroalkyl Sulfonate Chemical conducted their searches, evaluated the includes these documents and other Substances; Significant New Use Rule. quality of the sources, or indicated what information considered by EPA, Federal Register. 85 FR 45109, July 27, 2020 gaps were located and then explained including documents that are referenced (FRL–10010–44). why the specific tests requested, as within the documents that are included 13. EPA. Draft Compliance Guide for compared to others, would provide the Imported Articles Containing Surface in the docket, even if the referenced Coatings Subject to the Long-Chain data being sought. Such an evaluation is document is not physically located in necessary for EPA to conduct the Perfluoroalkyl Carboxylate and the docket. For assistance in locating Perfluoroalkyl Sulfonate Chemical considerations under TSCA section these other documents, please consult Substances Significant New Use Rule; Notice 26(h). the technical person listed under FOR of Availability and Request for Comment. FURTHER INFORMATION CONTACT. Federal Register. 85 FR 81466, December 16, 7. Vertebrate Testing 2020 (FRL–10017–86). 1. Center for Environmental Health, Cape 14. EPA. Final Rule; Fluoroalkenes; Final TSCA section 4(h) requires that EPA Fear River Watch, Clean Cape Fear, Test Rule. Federal Register. 52 FR 21516, reduce and replace the use of vertebrate Democracy Green, Toxic Free NC, The NC June 8, 1987 (FRL–3214–8). animals in the testing of chemical Black Alliance to Andrew Wheeler, 15. Williams, A.J., Grulke, C.M., Edwards, substances under TSCA section 4. EPA Administrator, Environmental Protection J. et al. The CompTox Chemistry Dashboard: must consider ‘‘as appropriate and to Agency. Petition to Require Health and a community data resource for environmental Environmental Testing Under the Toxic chemistry. Journal of Cheminformatics. 9, 61. the extent practicable and scientifically Substances Control Act on Certain PFAS justified, reasonably available existing 2017. Manufactured by Chemours in Fayetteville, 16. EPA. Introduction to ChemView. May information, including (i) Toxicity North Carolina. October 13, 2020. 28, 2020. https://www.epa.gov/assessing-and- information; (ii) Computational 2. Agency for Toxic Substances and managing-chemicals-under-tsca/ toxicology and bioinformatics; and (iii) Disease Registry (ATSDR). Notice; introduction-chemview. High-throughput screening methods and Availability of Draft Toxicological Profile: 17. DuPont Haskell Global Centers to 8(e) the prediction models of those Perfluoroalkyls. Federal Register. 83 FR Coordinator, Office of Pollution Prevention 28849, June 21, 2018 (Docket No. ATSDR– methods.’’ and Toxics, Environmental Protection 2015–0004). Agency. Substantial Risk Report for 3,3,3- The testing program the petitioners 3. EPA. EPA’s Per- and Polyfluoroalkyl Trifluoromethyl-1,2,2-trifluorovinyl ether, request would require testing on Substances (PFAS) Action Plan. EPA CAS #1187–93–5. November 8, 2007. https:// vertebrates. For example, OCSPP Test 823R18004. February 14, 2019. https:// chemview.epa.gov/chemview/ Guidelines 850.2300, 870.3650, and www.epa.gov/pfas/epas-pfas-action-plan. proxy?filename=2007-11-8EHQ-07-16360B_ 4. EPA. Proposed Rule; Long-Chain 8ehq_1107_16360b.pdf. 870.7800, among other test guidelines, Perfluoroalkyl Carboxylate and require vertebrate testing. Due to the 18. EPA. EPA and Partners Describe a Perfluoroalkyl Sulfonate Chemical Chemical Category Prioritization Approach to number of PFAS involved and tests Substances; Significant New Use Rule. Select 75 PFAS for Testing using New requested, the petitioners’ request Federal Register. 80 FR 2885, January 21, Approach Methods. February 26, 2019. would require testing on a large number 2015 (FRL–9915–63). https://www.epa.gov/sciencematters/epa- of vertebrates. Yet, as previously 5. EPA. Consent Order regarding DuPont and-partners-describe-chemical-category- discussed, the petition fails to provide Premanufacture Notices P08–508 and P09– prioritization-approach-select-75-pfas. reasonably available existing toxicity 509. (2009). https://chemview.epa.gov/ 19. Patlewicz, G. et al. A Chemical chemview/proxy?filename=sanitized_ Category-Based Prioritization Approach for information on the 54 PFAS, and as consent_order_p_08_0508c.pdf. Selecting 75 Per- and Polyfluoroalkyl such the petition has not provided 6. EPA. Notice of Availability; Lifetime Substances (PFAS) for Tier Toxicity and sufficient facts for EPA to consider Health Advisories and Health Effects Support Toxicokinetic Testing. Environmental Health reasonably available existing Documents for Perfluorooctanoic Acid and Perspectives 127(1). January 11, 2019. https:// information and encourage and facilitate Perfluorooctane Sulfonate. Federal Register. doi.org/10.1289/EHP4555. the use of test methods that reduce or 81 FR 33250, May 25, 2016 (FRL–9946–91– 20. Kwiatkowski, C. et al. Scientific Basis replace the use of vertebrates, group OW). for Managing PFAS as a Chemical Class. 7. EPA. Fact Sheet: 2010/2015 PFOA Environmental Science & Technology Letters. chemical substances as appropriate to Stewardship Program. Washington, DC: US 7,8:532–543. 2020. https://doi.org/10.1021/ reduce the use of vertebrates, and Environmental Protection Agency, Office of acs.estlett.0c00255. facilitate the formation of consortia for Pollution Prevention and Toxics. https:// 21. Strynar, M. et al. Identification of Novel jointly conducted testing. www.epa.gov/assessing-and-managing- Perfluoroalkyl Ether Carboxylic Acids

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(PFECAs) and Sulfonic Acids (PFESAs) in ACTION: Petitions for Reconsideration. Commission’s Electronic Comment Natural Waters Using Accurate Mass Time- Filing System at: http://apps.fcc.gov/ of-Flight Mass Spectrometry (TOFMS). SUMMARY: Petitions for Reconsideration ecfs/. The Commission will not send a Environmental Science & Technology. 49: (Petitions) have been filed in the Congressional Review Act (CRA) 11622–116302015. https://pubs.acs.org/doi/ Commission’s rulemaking proceeding submission to Congress or the abs/10.1021/acs.est.5b01215. by David A. LaFuria, on behalf of Smith 22. McCord, J. and M. Strynar. Government Accountability Office Bagley, Inc., Russell D. Lukas, on behalf Identification of Per- and Polyfluoroalkyl pursuant to the CRA, 5 U.S.C. of Coalition of Rural Wireless Carriers, Substances in the Cape Fear River by High 801(a)(1)(A), because no rules are being Resolution Mass Spectrometry and Carri Bennet, on behalf of Rural Nontargeted Screening. Environmental Wireless Association, Inc. and Jill adopted by the Commission. Science & Technology 53(9): 4717–4727. Canfield, on behalf of NTCA-The Rural Subject: Establishing a 5G Fund for 2019. https://doi.org/10.1186/s13321-017- Broadband Association, Matthew B. Rural America, FCC 20–150, published 0247-6. Gerst, on behalf of CTIA and Maurita at 85 FR 75770, November 25, 2020, in Authority: 15 U.S.C. 2601 et seq. Coley, on behalf of Multicultural Media, GN Docket No. 20–32. This document is Dated: January 7, 2021. Telecom and internet Council being published pursuant to 47 CFR Alexandra Dapolito Dunn, Convenors, 5G Fund Supporters. 1.429(e). See also 47 CFR 1.4(b)(1) and Assistant Administrator, Office of Chemical DATES: Oppositions to the Petitions 1.429(f), (g). Safety and Pollution Prevention. must be filed on or before February 8, Number of Petitions Filed: 5. [FR Doc. 2021–00456 Filed 1–21–21; 8:45 am] 2021. Replies to an opposition must be Federal Communications Commission. BILLING CODE 6560–50–P filed on or before February 16, 2021. ADDRESSES: Federal Communications Marlene Dortch, Commission, 45 L Street NE, Secretary, Office of the Secretary. FEDERAL COMMUNICATIONS Washington, DC 20554. [FR Doc. 2021–00464 Filed 1–21–21; 8:45 am] COMMISSION FOR FURTHER INFORMATION CONTACT: BILLING CODE 6712–01–P Valerie M. Barrish, Auctions Division, 47 CFR Parts 1 and 54 Office of Economics and Analytics, [GN Docket No. 20–32; Report No. 3165; (202) 418–0660 or Valerie.Barrish@ FRS 17372] fcc.gov. SUPPLEMENTARY INFORMATION: Petitions for Reconsideration of Action This is a in Rulemaking Proceeding summary of the Commission’s document, Report No. 3165, released AGENCY: Federal Communications January 6, 2021. The full text of the Commission. Petitions can be accessed online via the

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Notices Federal Register Vol. 86, No. 13

Friday, January 22, 2021

This section of the FEDERAL REGISTER third Plenary Session on December 16– protest; and publish more data on contains documents other than rules or 17, 2020, the Assembly of the agency-level protests. proposed rules that are applicable to the Conference adopted six public. Notices of hearings and investigations, Recommendation 2020–5, Publication recommendations and one official of Policies Governing Agency committee meetings, agency decisions and statement. rulings, delegations of authority, filing of Adjudicators. This recommendation petitions and applications and agency Recommendation 2020–1, Rules on encourages agencies to disclose policies statements of organization and functions are Rulemakings. This recommendation governing the appointment and examples of documents appearing in this encourages agencies to consider issuing oversight of adjudicators that bear on section. rules governing their rulemaking their impartiality and constitutional procedures. It identifies subjects that status. It offers best practices on how to agencies should consider addressing in ADMINISTRATIVE CONFERENCE OF provide descriptions of, and access to, their rules on rulemakings—without such policies on agency websites. THE UNITED STATES prescribing any particular procedures— and it urges agencies to solicit public Recommendation 2020–6, Agency Adoption of Recommendations input on these rules and make them Litigation Webpages. This AGENCY: Administrative Conference of publicly available. recommendation offers agencies best practices for making their federal court the United States. Recommendation 2020–2, Protected ACTION: Notice. Materials in Public Rulemaking Dockets. filings and relevant court opinions This recommendation offers agencies available to the public on their websites, SUMMARY: The Administrative best practices for protecting sensitive with particular emphasis on materials Conference of the United States adopted personal and confidential commercial from litigation dealing with agency six recommendations and one official information in public rulemaking regulatory programs. It provides statement at its virtual Seventy-third dockets. It identifies, in particular, best guidance on the types of litigation Plenary Session. The appended practices for agencies to use when materials that will be of greatest interest recommendations address: (a) Rules on redacting, summarizing, and aggregating to the public and on how agencies can Rulemakings; (b) Protected Materials in comments that contain such disseminate the materials in a way that Public Rulemaking Dockets; (c) Agency information. It also encourages agencies makes them easy to find. Appellate Systems; (d) Government Contract Bid Protests Before Agencies; to provide public notices that Statement #20, Agency Use of (e) Publication of Policies Governing discourage commenters from submitting Artificial Intelligence. This statement Agency Adjudicators; and (f) Agency such information in the first place. identifies issues agencies should Litigation Webpages. The official Recommendation 2020–3, Agency consider when adopting, revamping, statement addresses Agency use of Appellate Systems. This establishing policies and practices Artificial Intelligence. recommendation offers agencies best governing, and regularly monitoring FOR FURTHER INFORMATION CONTACT: For practices to improve administrative artificial intelligence systems. Among Recommendations 2020–1 and 2020–2, review of hearing-level adjudicative the topics it addresses are transparency, Todd Rubin; for Recommendation decisions with respect to case selection, harmful biases, technical capacity, 2020–3, Gavin Young; for decision-making process and procurement, privacy, security, Recommendations 2020–4 and 2020–6, procedures, management oversight, and decisional authority, and oversight. public disclosure and transparency. In and Statement #20, Mark Thomson; and The Appendix below sets forth the doing so, it encourages agencies to for Recommendation 2020–5, Leigh full texts of these six recommendations identify the objectives of such review Anne Schriever. For each of these and the official statement. The actions the address and telephone and structure their appellate systems to serve those objectives. Conference will transmit the number are: Administrative Conference recommendations and statement to of the United States, Suite 706 South, Recommendation 2020–4, affected agencies, Congress, and the 1120 20th Street NW, Washington, DC Government Contract Bid Protests Judicial Conference of the United States, 20036; Telephone 202–480–2080. Before Agencies. This recommendation as appropriate. The recommendations SUPPLEMENTARY INFORMATION: The suggests improvements to the and statement are not binding, so the Administrative Conference Act, 5 U.S.C. procedures governing agency-level entities to which they are addressed will 591–596, established the Administrative procurement contract disputes— make decisions on their Conference of the United States. The commonly called bid protests—under implementation. Conference studies the efficiency, the Federal Acquisition Regulation and adequacy, and fairness of the agency-specific regulations to make The Conference based these administrative procedures used by those procedures more simple, recommendations and the statement on Federal agencies and makes transparent, and predictable. It urges research reports that are posted at: recommendations to agencies, the agencies to clarify what types of https://www.acus.gov/meetings-and- President, Congress, and the Judicial decisions can be the subjects of agency- events/plenary-meeting/73rd-plenary- Conference of the United States for level bid protests, what processes and session. Committee-proposed drafts of procedural improvements (5 U.S.C. deadlines will govern such protests, and the recommendations and statement, 594(1)). For further information about who in the agency will decide such and public comments received in the Conference and its activities, see protests; make it easier for protesters to advance of the plenary session, are also www.acus.gov. At its virtual Seventy- get information about the decisions they available using the same link.

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Dated: January 14, 2021. by informing the public that the agency will reflect topics frequently covered in existing Shawne C. McGibbon, follow particular procedures, thereby rules on rulemakings): allowing the public to plan their General Counsel. a. Procedures prior to the issuance of a participation in the rulemaking process notice of proposed rulemaking; Appendix—Recommendations and accordingly. Third, they promote b. Procedures connected with the notice- Statement of the Administrative accountability by ensuring that agency and-comment process; Conference of the United States leadership has approved the policies and c. Procedures connected with the procedures the agency will follow. And they presidential review process, if applicable; Administrative Conference Recommendation can also provide accountability in connection d. Procedures for handling post-comment 2020–1 with individual rulemakings by creating an period communications; internal approval process by which agency Rules on Rulemakings leadership reviews proposed and final rules. e. Internal approval procedures for issuing and finalizing rules; and Adopted December 16, 2020 Finally, they promote transparency by affording the public access to the agency’s f. Procedures for reassessing existing rules. Numerous agencies have promulgated internal procedures pertaining to its The appendix gives examples of particular rules setting forth the policies and rulemaking process. subtopics agencies may wish to consider procedures they will follow when conducting In promulgating a rule on rulemakings, an under each of these topics. informal rulemakings under 5 U.S.C. 553.1 agency may wish to solicit public input to 3. Agencies should make rules on The rules can cover a variety of practices, inform the rule’s development, even if such rulemakings available in a prominent, easy- including processes for initiating and seeking a rule is subject to 5 U.S.C. 553’s exemption public input on new rules, coordinating with to-find place on the portion of their websites from notice-and-comment procedures as a the Office of Management and Budget and dealing with rulemaking matters. rule of procedure, general statement of other agencies as a rule is being formulated, Additionally, agencies should consider policy, or otherwise. In soliciting public and obtaining approval from agency publishing them in the Federal Register and input, agencies may wish to use mechanisms leadership before a proposed rule is issued or the Code of Federal Regulations. When that facilitate more robust participation, finalized. Agencies refer to these rules by posting rules on rulemakings on their including by underrepresented different names. This Recommendation calls websites, agencies should use techniques like communities.3 As the Administrative them ‘‘rules on rulemakings.’’ linked tabs, pull-down menus, indexing, Conference has acknowledged in past Rules on rulemakings vary—in terms of the tagging, and sorting tables to ensure that recommendations, public comment can both particular matters they address, their scope relevant documents are easily findable. provide valuable input from the public and and comprehensiveness, and other Agencies should also design their search enhance public acceptance of an agency’s characteristics—but they share several engines to allow people to easily identify rules.4 common features. First, they authoritatively relevant documents. An agency may also wish to publish its reflect the agency’s position as to what rule on rulemakings in the CFR. Doing so can 4. In addition to issuing rules on procedures it will observe when adopting enhance transparency and facilitate rulemakings, agencies should consider new rules. By ‘‘authoritative,’’ this accountability. Importantly, publishing a rule explaining in accessible language how the Recommendation means that a rule on on rulemakings in the CFR does not, by itself, rulemaking process works in order to educate rulemakings sets forth the procedures that make the rule on rulemakings judicially the public. Such explanations might be agency officials responsible for drafting and enforceable.5 integrated within a rule on rulemakings or finalizing new rules will follow in at least This Recommendation does not seek to might be contained in separate explanatory most cases within the rule on rulemakings’ resolve whether, when, or on what legal documents (e.g., documents identifying scope, though it may contemplate the bases a court might enforce a rule on frequently asked questions). When providing possibility that agency leadership could 6 such explanations, an agency should, to the 2 rulemakings against an agency. authorize an alternative set of procedures. extent practicable, distinguish between Second, rules on rulemakings do more than Recommendation procedures it intends to follow and material simply summarize or explain rulemaking 1. Agencies should consider promulgating provided purely by way of background. requirements of the Administrative rules on rulemakings setting forth the 5. Agencies should consider a broad range Procedure Act and other statutes, although policies and procedures they will follow in of means of seeking public input on rules on they often serve an explanatory function at informal rulemaking under 5 U.S.C. 553. rulemakings, even if the Administrative the same time that they set forth the 2. In issuing rules on rulemakings, agencies procedures the agencies will follow in Procedure Act does not require it. should consider including provisions 6. Agencies should consider the extent to conducting rulemakings. Rules on addressing the following topics (which rulemakings set forth additional which procedures required by a rule on commitments by an agency concerning how rulemakings should be made internally 3 it will conduct rulemakings. And third, See, e.g., 2 U.S.C. 1534 (Unfunded Mandates waivable and, if so, by whom. For example, Reform Act); 5 U.S.C. 609 (Regulatory Flexibility agencies disseminate rules on rulemakings they might consider drafting a rule on Act); Exec. Order No. 13,175, Consultation and rulemakings in a way that allows high-level publicly rather than only internally. They Coordination with Indian Tribal Governments, 65 appear on agency websites and are often FR 67249 (Nov. 11, 2000). agency officials to permit other officials to published not only in the Federal Register 4 See Admin. Conf. of the U.S., Recommendation use alternative procedures. but also in the Code of Federal Regulations 92–1, The Procedural and Practice Rule Exemption Appendix (CFR). from the APA Notice-and-Comment Rulemaking Rules on rulemakings can serve at least Requirements, 57 FR 30102 (July 8, 1992); see also Non-Exhaustive List of Topics for Agencies four important objectives. First, they promote Recommendation 2019–1, supra note 2; To Consider Including Within Their Rules efficiency by ensuring that both agency Recommendation 2017–5, supra note 2. on Rulemakings officials and those outside the agency know 5 See, e.g., Health Ins. Ass’n of Am. v. Shalala, 23 where to go to find the agency’s rulemaking F.3d 412, 423 (D.C. Cir. 1994) (stating that (a) Procedures Prior to the Issuance of a ‘‘publication in the Code of Federal Regulations, or Notice of Proposed Rulemaking policies. Second, they promote predictability its absence’’ is only ‘‘a snippet of evidence of agency intent’’ that the published pronouncement Subtopic Examples: 1 This Recommendation does not address be given binding effect). (1) Regulatory planning; 7 rulemakings subject to the formal hearing 6 Some rules on rulemakings include a statement (2) Issuing advance notices of proposed requirements of the Administrative Procedure Act. that they do not create any substantive or rulemaking and obtaining feedback from See 5 U.S.C. 556–57. procedural rights or benefits. This Recommendation members of the public using means other 2 Cf. Admin. Conf. of the U.S., Recommendation does not address whether such disclaimers should than the notice-and-comment process, such 2019–1, Agency Guidance Through Interpretive be included or what legal effect they may have on Rules, 84 FR 38927 (Aug. 8, 2019); Admin. Conf. judicial review. These questions cannot be of the U.S., Recommendation 2017–5, Agency answered in isolation from the broader question of 7 See Admin. Conf. of the U.S., Recommendation Guidance Through Policy Statements, 82 FR 61734 when a rule on rulemakings is judicially 2015–1, Promoting Accuracy and Transparency in (Dec. 29, 2017). enforceable. the Unified Agenda, 80 FR 36757 (June 26, 2015).

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as requests for information and focus (9) Waiving or invoking of Administrative (4) Handling rules that have been vacated groups; 8 Procedure Act exemptions to notice and or remanded without vacatur.30 (3) Accepting, reviewing, and responding comment; 21 and to petitions for rulemaking; 9 Administrative Conference Recommendation (10) Using interim final rules or direct final 2020–2 (4) Considering options besides rules.22 rulemaking; Protected Materials in Public Rulemaking (5) Performing ex ante regulatory analyses (c) Procedures Connected With the Dockets (e.g., benefit-cost analysis and regulatory Presidential Review Process, if Applicable flexibility analysis); 10 Subtopic Examples: Adopted December 16, 2020 (6) Using plain language in regulatory (1) Interacting with the Office of As part of the rulemaking process, agencies drafting; 11 Information and Regulatory Affairs, the create public rulemaking dockets, which (7) Preparing for potential judicial review Office of the Federal Register, the Regulatory consist of all rulemaking materials agencies of rulemakings, including deciding whether Information Service Center, the Small have: (1) Proactively published online or (2) to make any of the provisions of a rule Business Administration’s Office of made available for public inspection in a 12 severable; Advocacy, and other offices with reading room. Public rulemaking dockets 13 (8) Conducting negotiated rulemaking; government-wide rulemaking include materials agencies generate and responsibilities; themselves and comments agencies receive (9) Establishing an effective date for rules. (2) Participating in the interagency review from the public. Their purpose is to provide the public with the information that (b) Procedures Connected With the Notice- process; and informed agencies’ rulemakings.1 (3) Procedures related to international and-Comment Process The Administrative Conference has issued regulatory cooperation.23 Subtopic Examples: several recommendations to help agencies (1) Materials to be published on (d) Procedures for Handling Post-Comment balance the competing considerations of Regulations.gov with the notice; 14 Period Communications transparency and confidentiality in managing (2) Minimum comment periods to be their public rulemaking dockets.2 This Subtopic Examples: allowed; 15 project builds on these recommendations. (3) Policies on ex parte contacts; 16 (1) Provisions pertaining to reply 24 The scope of the Recommendation is (4) Handling external merits comments and 25 limited to personal information and communications not filed as comments; (2) Handling late-filed comments. confidential commercial information that (5) Incorporating standards by reference; 17 (e) Internal Approval Procedures for Issuing agencies have decided to withhold from their (6) Using social media to engage the public and Finalizing Rules public rulemaking dockets, which this in rulemaking; 18 Recommendation calls ‘‘protected material.’’ Subtopic Examples: (7) Obtaining feedback from American The Recommendation specifies how agencies Indian tribes, other historically (1) Procedures for submitting rules to should consider handling protected material. underrepresented or under-resourced groups, offices with legal, economic, and other For purposes of this Recommendation, and state and local governments; 19 responsibilities within the agency for personal information is information about an 26 (8) Posting, analyzing, and responding to review and individual including his or her education, public comments, including comments that (2) Procedures for submitting rules to the financial transactions, medical history, may contain confidential commercial relevant agency official for final approval. criminal or employment history, or similarly information, protected personal information, (f) Procedures for Reassessing Existing Rules sensitive information, and that contains his or other kinds of sensitive submissions; 20 or her name, or the identifying number, Subtopic Examples: symbol, or other identifying particular (1) Issuing regulatory waivers and 8 See Admin. Conf. of the U.S., Recommendation exemptions; 27 2018–7, Public Engagement in Rulemaking, 84 FR 30 See Admin. Conf. of the U.S., Recommendation 2146 (Feb. 6, 2019). (2) Engaging in retrospective review of 2013–6, Remand Without Vacatur, 78 FR 76272 28 9 See Admin. Conf. of the U.S., Recommendation rules; (Dec. 17, 2013). 2014–6, Petitions for Rulemaking, 79 FR 75117 (3) Maintaining and preserving rulemaking 1 The public rulemaking docket is distinguished (Dec. 17, 2014). records, including transparency of such from ‘‘the administrative record for judicial 10 See Admin. Conf. of the U.S., Recommendation records and the handling of confidential review,’’ which is intended to provide courts with 2012–1, Regulatory Analysis Requirements, 77 FR commercial information, protected personal a record for evaluating challenges to the rule, and 47801 (Aug. 10, 2012). information, or other kinds of sensitive the ‘‘rulemaking record,’’ which means all 11 See Admin. Conf. of the U.S., Recommendation information contained therein; 29 and comments and materials submitted to agencies 2017–3, Plain Language in Regulatory Drafting, 82 during comment periods and any other materials FR 61728 (Dec. 29, 2017). agencies considered during the course of the 12 See Admin. Conf. of the U.S., Recommendation Conf. of the U.S., Recommendation 2011–1, Legal rulemaking. See Admin. Conf. of the U.S., 2018–2, Severability in Agency Rulemaking, 83 FR Considerations in e-Rulemaking, 76 FR 48789 (Aug. Recommendation 2013–4, The Administrative 30685 (June 29, 2018). 9, 2011). Record in Informal Rulemaking, 78 FR 41358 (July 13 See Admin. Conf. of the U.S., Recommendation 21 See Recommendation 92–1, supra note 4. 10, 2013). 2017–2, Negotiated Rulemaking and Other Options 22 See Admin. Conf. of the U.S., Recommendation 2 Recommendation 2011–1, Legal Considerations for Public Engagement, 82 FR 31040 (July 5, 2017). 95–4, Procedures for Noncontroversial and in e-Rulemaking, advises agencies to allow 14 See Admin. Conf. of the U.S., Recommendation Expedited Rulemakings, 60 FR 43108 (Aug. 18, submitters to flag confidential information, 2018–6, Improving Access to Regulations.gov’s 1995). including trade secrets, and advises agencies to Rulemaking Dockets, 84 FR 2143 (Feb. 6, 2019). 23 See Admin. Conf. of the U.S., Recommendation devise procedures for reviewing and handling such 15 See Admin. Conf. of the U.S., Recommendation 2011–6, International Regulatory Cooperation, 77 information. Admin. Conf. of the U.S., 2011–2, Rulemaking Comments, 76 FR 48791 (Aug. FR 2259 (Jan. 17, 2012). Recommendation 2011–1, Legal Considerations in 9, 2011). 24 See Recommendation 2011–2, supra note 15. e-Rulemaking, ¶ 1, 76 FR 48789, 48790 (Aug. 9, 2011). Recommendation 2013–4, supra note 1, ¶ 11, 16 See Admin. Conf. of the U.S., Recommendation 25 See id. advises agencies to develop guidance on managing 2014–4, ‘‘Ex Parte’’ Communications in Informal 26 See Admin. Conf. of the U.S., Recommendation and segregating protected information, such as Rulemaking, 79 FR 35993 (June 25, 2014). 2019–5, Agency Economists, 84 FR 71349 (Dec. 27, confidential commercial information and sensitive 17 See Admin. Conf. of the U.S., Recommendation 2019). personal information, while disclosing non- 2011–5, Incorporation by Reference, 77 FR 2257 27 See Admin. Conf. of the U.S., Recommendation protected materials; see also Admin. Conf. of the (Jan. 17, 2012). 2017–7, Regulatory Waivers and Exemptions, 82 FR U.S., Recommendation 89–7, Federal Regulation of 18 See Admin. Conf. of the U.S., Recommendation 61742 (Dec. 29, 2017). Biotechnology, 54 FR 53494 (Dec. 29, 1988); Admin. 2013–5, Social Media in Rulemaking, 78 FR 76269 28 See Admin. Conf. of the U.S., Recommendation Conf. of the U.S., Recommendation 82–1, (Dec. 17, 2013). 2014–5, Retrospective Review of Agency Rules, 79 Exemption (b)(4) of the Freedom of Information Act, 19 See Recommendation 2018–7, supra note 8. FR 75114 (Dec. 17, 2014). 47 FR 30702 (July 15, 1982); Admin. Conf. of the 20 See Admin. Conf. of the U.S., Recommendation 29 See Admin. Conf. of the U.S., Recommendation U.S., Recommendation 80–6, Intragovernmental 2020–2, Protected Materials in Public Rulemaking 2013–4, Administrative Record in Informal Communications in Informal Rulemaking Dockets, 86 FR (approved Dec. 16, 2020); Admin. Rulemaking, 78 FR 41358 (July 10, 2013). Proceedings, 45 FR 86408 (Dec. 31, 1980).

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assigned to the individual.3 Confidential employment history, contained in agencies’ the public often face in the submission and commercial information is commercial systems of records, without that person’s handling of such material. information that is customarily kept private, written consent.8 The Trade Secrets Act This Recommendation proposes steps or at least closely held, by the person or generally prevents agencies from disclosing agencies can take to withhold protected business providing it.4 Other types of trade secrets and other kinds of confidential materials from their public rulemaking information, such as national security commercial information, such as corporate dockets while still providing the public with information and copyrighted materials, are losses and profits.9 the information upon which agencies relied beyond the Recommendation’s scope. The Both the Privacy Act and the Trade Secrets in formulating proposed rules.13 Recommendation is also limited to Act have exceptions. For the Privacy Act, the addressing procedures for protecting main exception relevant to this Recommendation materials that agencies decide warrant Recommendation is for information required Recommendations for All Agencies to be released under the Freedom of protection. It is not intended to define the 1. To reduce the risk that agencies will universe of protected materials. In particular, Information Act (FOIA).10 The Trade Secrets Act only has one exception, which covers inadvertently disclose protected material, the Recommendation does not address any agencies should describe what kinds of issue that may arise if agencies choose to rely any materials authorized to be disclosed by statute (including FOIA) or regulation.11 personal and confidential commercial on protected material in explaining their information qualify as protected material and rulemakings, whether in notices of proposed Whether a particular piece of personal or confidential commercial information meets should clearly notify the public about their rulemaking, regulatory impact analyses, or treatment of protected material. An agency’s otherwise. one of these exceptions often involves a complex determination that depends upon notifications should: Agencies accept public comments for their a. Inform members of the public that public rulemaking dockets primarily through the exact type of information at issue and its contemplated use, and agencies must comments are generally subject to public Regulations.gov, their own websites, and disclosure, except when disclosure is limited email. Regulations.gov and many agency determine the applicability of the exceptions on a case-by-case basis. For example, by law; websites that accept comments expressly b. Inform members of the public whether notify the public that agencies may publish whether FOIA authorizes disclosure of confidential commercial information may the agency offers assurances of protection the information submitted in public from disclosure for their confidential 5 When people submit comments turn in part on whether agencies in receipt comments. commercial information and, if so, how to to agencies, however, agencies typically do of the information assured submitters that the identify such information for the agency; not immediately publish the comments. information would be withheld from the 12 c. Provide guidance to the public Instead, agencies generally take time to public. If agencies offer assurances that concerning the submission of protected screen comments before publishing them. they will not disclose confidential material that pertains to third parties, Most agencies perform at least some kind of commercial information, agencies and including instructions that the disclosure of screening during this period. submitters may rely on those assurances as some protected material may be prohibited For all agencies, whether to withhold or a defense against compelled disclosure under by law; disclose protected material is governed by FOIA. In many cases, agencies assure d. Advise members of the public to review various laws: Some mandate disclosure, companies that they will not disclose such their comments for the material identified some mandate withholding, and some leave information in order to encourage companies above in (c) and, if they find such material, agencies with substantial discretion in to submit it. to remove any such material that is not deciding whether to disclose. Although a full Particular cases are governed by specific essential to the comment; description of those laws is beyond the scope requirements of law, not broad categorical e. Inform members of the public that they of this Recommendation, a brief overview of labels. But agencies often consider certain may request, during the period between at least some of this body of law helps to categories of personal information and when a comment is received and when it is identify the issues agencies face. confidential commercial information to be made public, that protected material they The Administrative Procedure Act requires protected material (e.g., trade secrets, social inadvertently submitted be withheld from the agencies to ‘‘give interested persons an security numbers, bank account numbers, public rulemaking docket; opportunity to participate in rulemaking passport numbers, addresses, email f. Inform members of the public that they through submission of written data, views, or addresses, medical information, and may request, after the agency has published arguments.’’ 6 The United States Court of information concerning a person’s finances). any comment, that protected material Appeals for the D.C. Circuit has interpreted There are many ways protected material pertaining to themselves or to their this provision to ordinarily require that may arrive at the agency in a rulemaking. A dependents within the comment be removed agencies make publicly available the critical person might submit his or her own from the public rulemaking docket; and information—including studies, data, and information, intentionally or unintentionally, g. Inform members of the public that the methodologies—underlying proposed rules.7 and then ask the agency not to disclose it. A agency reserves the right to redact or The Privacy Act and the Trade Secrets Act third party might submit another person’s aggregate any part of a comment if the agency place limits on the disclosure norm information, with or without that person’s determines that it constitutes protected discussed above. Generally, the Privacy Act knowledge. A company might submit a material, or may withhold a comment in its prevents agencies from disclosing any document containing its own confidential entirety if it determines that redaction or information about a person, such as medical commercial information, intentionally or aggregation would insufficiently prevent the records, educational background, and unintentionally, with or without the agency’s prior assurance of protection. Or a company disclosure of this material. 2. Agencies should include the 3 might submit another company’s or person’s See Privacy Act of 1974 § 3, 5 U.S.C. 552a(a)(4). notifications described in Paragraph 1, or a 4 See Food Mktg. Inst. v. Argus Leader Media, 139 information. Depending on the information in question and the manner in which it was link to those notifications, in at least the S. Ct. 2356, 2363 (2019); see also Exec. Order No. following places: 12,600, Predisclosure Notification Procedures for submitted, there may be issues of waiver of Confidential Commercial Information, 52 FR 23781 statutory protection. Such questions, like all a. Within the rulemaking documents on (June 23, 1987). questions regarding the substance of the laws which agencies request comments, such as a 5 See Christopher Yoo, Protected Materials in governing protected material, are beyond this Public Rulemaking Dockets 24 (Nov. 24, 2020) Recommendation’s scope, but they illustrate 13 Permitting the submission of anonymous and (report to the Admin. Conf. of the U.S.), https:// the various considerations that agencies and pseudonymous comments is one way that some www.acus.gov/report/final-report-protected- agencies attempt to reduce the privacy risks materials-public-rulemaking-dockets. commenters face when submitting protected 8 5 U.S.C. 552a(b). 6 5 U.S.C. 553(c). material. Issues regarding the submission of 9 7 Portland Cement Ass’n v. Ruckelshaus, 486 F.2d 18 U.S.C. 1905. anonymous and pseudonymous comments are 375, 393 (D.C. Cir. 1973). In addition to these public 10 5 U.S.C. 552a(b)(2). being considered in an ongoing project of the transparency requirements, there are a number of 11 See CNA Fin. Corp. v. Donovan, 830 F.2d 1132, Administrative Conference titled Mass, Computer- federal record-retention requirements of which 1137–43 (D.C. Cir. 1987). Generated, and Fraudulent Comments and are agencies should be aware. See, e.g., 44 U.S.C. 3301. 12 See Food Mktg. Inst., 139 S. Ct. at 2361. beyond the scope of this Recommendation.

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notice of proposed rulemaking or an advance agencies should withhold the comment in its of lowering the cost of completing notice of proposed rulemaking; entirety. When doing so, they should government tasks and improving the quality, b. On agencies’ own comment submission describe the withheld material for the public consistency, and predictability of agencies’ forms, if agencies have them; in as much detail as possible without decisions. But agencies’ uses of AI also raise c. Within any automatic emails that compromising its confidentiality. concerns about the full or partial agencies send acknowledging receipt of a 10. When deciding whether and how to displacement of human decision making and comment; redact, aggregate, or withhold protected discretion. d. On any part of agencies’ websites that material, agencies should explore using Consistent with its statutory mission to describe their rulemaking process or within artificial intelligence-based tools to aid in promote efficiency, participation, and any rules on rulemakings they may have, as identifying protected material. Agencies fairness in administrative processes,2 the described in Recommendation 2020–1, Rules should consult with private sector experts Administrative Conference offers this on Rulemakings; and and technology-focused agencies, such as the Statement to identify issues agencies should e. Within any notices of public meetings General Services Administration’s consider when adopting or modifying AI pertaining to a rule. Technology Transformation Service and the systems and developing practices and 3. The General Services Administration’s Office of Management and Budget’s United procedures for their use and regular eRulemaking Program Management Office States Digital Service, to determine which monitoring. The Statement draws on a pair should work with agencies that participate in tools are most appropriate and how they can of reports commissioned by the Regulations.gov to include or refer to the best be deployed given the agencies’ Administrative Conference,3 as well as the notifications described in Paragraph 1 within resources. input of AI experts from government, any automated emails Regulations.gov sends academia, and the private sector (some ACUS Recommendations for Agencies That Offer acknowledging receipt of a comment. members) provided at meetings of the ad hoc Assurances of Protection From Disclosure of 4. If a submitter notifies an agency that the committee of the Administrative Conference Confidential Commercial Information submitter inadvertently included protected that proposed this Statement. material in the submitter’s comment, the 11. Agencies that offer assurances of The issues addressed in this Statement agency should act as promptly as possible to protection from disclosure of confidential implicate matters involving law, policy, determine whether such material warrants commercial information should decide how finances, human resources, and technology. withholding from the public rulemaking they will offer such assurances. Agencies can To minimize the risk of unforeseen problems docket and, if so, withhold it from the public choose to inform submitters, directly upon involving an AI system, agencies should, rulemaking docket, or, if already disclosed, submission, that they will withhold throughout an AI system’s lifespan, solicit remove it from the public rulemaking docket. confidential commercial information from input about the system from the offices that If an agency determines that such material the public rulemaking docket; post a general oversee these matters. Agencies should also does not qualify as protected, it should notice informing submitters that confidential keep in mind the need for public trust in promptly notify the submitter of this finding commercial information will be withheld their practices and procedures for use and with a brief statement of reasons. from the public rulemaking docket; or both. regular monitoring of AI technologies. 5. Agencies should allow third parties to 12. Such agencies should adopt policies to 1. Transparency request that protected material pertaining to help them identify such information. themselves or a dependent be removed from Agencies should consider including the Agencies’ efforts to ensure transparency in the public rulemaking docket. Agencies following, either in tandem or as alternatives, connection with their AI systems can serve should review such requests and, upon as part of their policies, including within any many valuable goals. When agencies set up determining that the material subject to the rules on rulemakings they may have, as processes to ensure transparency in their AI request qualifies as protected material, described in Recommendation 2020–1, Rules systems, they should consider publicly should remove it from the public rulemaking on Rulemakings: identifying the processes’ goals and the a. Instructing submitters to identify clearly docket as promptly as possible. If an agency rationales behind them. For example, that the document contains confidential determines that the material does not qualify agencies might prioritize transparency in the commercial information; as protected, it should promptly notify the service of legitimizing its AI systems, b. Instructing submitters to flag the requestor of this finding with a brief facilitating internal or external review of its particular text within the document that statement of reasons. AI-based decision making, or coordinating its constitutes confidential commercial AI-based activities. Different AI systems are Recommendations for Agencies That Screen information; and likely to satisfy some transparency goals Comments for Protected Material Before c. Instructing submitters to submit both more than others. When possible, agencies Publication in the Public Rulemaking Docket redacted and unredacted versions of a should use metrics to measure the 6. Agencies that screen comments for comment that contains confidential performance of their AI-transparency commercial information. protected material before publication in the processes. public rulemaking docket, either as required Administrative Conference Statement #20 In setting transparency goals, agencies by law or as a matter of discretion, should should consider to whom they should be redact the protected material and publish the Agency Use of Artificial Intelligence rest of the comment. Redaction should be Adopted December 16, 2020 making or intervention. There are many illustrative thorough enough to prevent the public from examples of AI that can help frame the issue for the Artificial intelligence (AI) techniques are discerning the redacted material, but not so purpose of this Statement. They include, but are not changing how government agencies do their broad as to prevent the public from viewing limited to, AI assistants, computer vision systems, work.1 non-protected material. Advances in AI hold out the promise biomedical research, unmanned vehicle systems, 7. If redaction is not feasible within a advanced game-playing software, and facial 1 There is no universally accepted definition of recognition systems as well as application of AI in comment, agencies should consider both information technology and operational presenting the data in a summarized form. ‘‘artificial intelligence,’’ and the rapid state of evolution in the field, as well as the proliferation technology. 8. If redaction is not feasible across of use cases, makes coalescing around any such 2 See 5 U.S.C. 591. multiple, similar comments, agencies should definition difficult. See, e.g., John S. McCain 3 David Freeman Engstrom, Daniel E. Ho, consider presenting any related information National Defense Authorization Act for Fiscal Year Catherine M. Sharkey, & Mariano-Florentino in an aggregated form. Agencies should work 2019, Public Law 115–232, 238(g), 132 Stat. 1636, Cue´llar, Government by Algorithm: Artificial with data science experts and others in 1697–98 (2018) (using one definition of AI); Nat’l Intelligence in Federal Administrative Agencies relevant disciplines to ensure that Inst. of Standards & Tech., U.S. Leadership in AI: (Feb. 2020) (report to the Admin. Conf. of the U.S.), aggregation is thorough enough to prevent A Plan for Federal Engagement in Developing https://www.acus.gov/report/government-algorithm- someone from disaggregating the Technical Standards and Related Tools 7–8 (Aug. artificial-intelligence-federal-administrative- 9, 2019) (offering a different definition of AI). agencies; Cary Coglianese, A Framework for information. Generally speaking, AI systems tend to have Governmental Use of Machine Learning (Dec. 8, 9. If the approaches identified in characteristics such as the ability to learn to solve 2020) (report to the Admin. Conf. of the U.S.), Paragraphs 6–8 would still permit a member complex problems, make predictions, or undertake https://www.acus.gov/report/framework- of the public to identify protected material, tasks that heretofore have relied on human decision governmental-use-machine-learning-final-report.

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transparent. For instance, depending on the AI systems can be biased because of their their own, access those tools sooner, and save nature of their operations, agencies might reliance on data reflecting historical human some of the up-front costs associated with prioritize transparency to the public, courts, biases or because of their designs. Biases in developing the technical capacity needed to Congress, or their own officials. AI systems can increase over time through design AI systems.6 Creating AI tools within The appropriate level or nature of feedback. That can occur, for example, if the agencies, by contrast, might yield tools that transparency and interpretability in agencies’ use of a biased AI system leads to systematic are better tailored to the agencies’ particular AI systems will also depend on context. In errors in categorizations, which are then tasks and policy goals. Creating AI systems some contexts, such as adjudication, reason- reflected in the data set or data environment within agencies can also facilitate giving requirements may call for a higher the system uses to make future predictions. development of internal technical capability, degree of transparency and interpretability Agencies should be mindful of the which can yield benefits over the lifetime of from agencies regarding how their AI systems interdependence of the models, metrics, and the AI systems and in other technological function. In other contexts, such as data that underpin AI systems. tasks the agencies may confront. enforcement, agencies’ legitimate interests in Identifying harmful biases in AI systems Certain government offices are available to preventing gaming or adversarial learning by can pose challenges. To identify and mitigate help agencies with decisions and actions 7 regulated parties could militate against biases, agencies should, to the extent related to technology. Agencies should make providing too much information (or specific practical, consider whether other data or appropriate use of these resources when types of information) to the public about AI methods are available. Agencies should obtaining an AI system. Agencies should also systems’ processes. In every context, agencies periodically examine and refresh AI consider the cost and availability of the should consider whether particular laws or algorithms and other protocols to ensure that technical support necessary to ensure that an policies governing disclosure of information they remain sufficiently current and reflect AI system can be maintained and updated in a manner consistent with its expected life apply. new information and circumstances relevant cycle and service mission. In selecting and using AI techniques, to the functions they perform. agencies should be cognizant of the degree to Data science techniques for identifying and 5. Data mitigating harmful biases in AI systems are which a particular AI system can be made AI systems require data, often in vast developing. Agencies should stay up to date transparent to appropriate people and quantities. Agencies should consider whether on developments in the field of AI, entities, including the general public. There they have, or can obtain, data that particularly on algorithmic fairness; establish may be tradeoffs between explainability and appropriately reflect conditions similar to the processes to ensure that personnel that reflect accuracy in AI systems, so that transparency ones the agencies’ AI systems will address in and interpretability might sometimes weigh various disciplines and relevant perspectives practice; whether the agencies have the in favor of choosing simpler AI models. The are able to inspect AI systems and their resources to render the data into a format that appropriate balance between explainability decisions for indications of harmful bias; test can be used by the agencies’ AI systems; and and accuracy will depend on the specific AI systems in environments resembling the how the agencies will maintain the data and context, including agencies’ circumstances ones in which they will be used; and make link them to their AI systems without and priorities. use of internal and external processes for compromising security or privacy. Agencies The proprietary nature of some AI systems evaluating the risks of harmful bias in AI should also review and consider statutes and may also affect the extent to which they can systems and for identifying such bias. regulations that impact their uses of AI as a be made transparent. When agencies’ AI 3. Technical Capacity potential collector and consumer of data.8 systems rely on proprietary technologies or algorithms the agencies do not own, the AI systems can help agencies conserve 6. Privacy agencies and the public may have limited resources, but they can also require Agencies have a responsibility to protect access to the information about the AI substantial investments of human and privacy with respect to personally techniques. Agencies should strive to financial capital. Agencies should carefully identifiable information in AI systems. In a anticipate such circumstances and address evaluate the short- and long-term costs and narrow sense, this responsibility demands them appropriately, such as by working with benefits of an AI system before committing that agencies comply with requirements outside providers to ensure they will be able significant resources to it. Agencies should related to, for instance, transparency, due to share sufficient information about such a also ensure they have access to the technical process, accountability, and information system. Agencies should not enter into expertise required to make informed quality and integrity established by the contracts to use proprietary AI systems decisions about the type of AI systems they Privacy Act of 1974, Section 208 of the unless they are confident that actors both require; how to integrate those systems into E-Government Act of 2002, and other internal and external to the agencies will their operations; and how to oversee, applicable laws and policies.9 More broadly, have adequate access to information about maintain, and update those systems. agencies should recognize and appropriately the systems. Given the data science field’s ongoing and manage privacy risks posed by an AI system. rapid development, agencies should consider Agencies should consider privacy risks 2. Harmful Bias cultivating an AI-ready workforce, including At their best, AI systems can help agencies through recruitment and training efforts that 6 Agencies may also obtain AI systems that are identify and reduce the impact of harmful emphasize AI skills. When agency personnel embedded in commercial products. The biases.4 Yet they can also unintentionally lack the skills to develop, procure, or considerations applicable to such embedded AI create or exacerbate those biases by encoding maintain AI systems that meet agencies’ systems should reflect the fact that agencies may and deploying them at scale. In deciding needs, agencies should consider other means have less control over their design and of expanding their technical expertise, development. whether and how to deploy an AI system, 7 agencies should carefully evaluate the including by relying on tools such as the Within the General Services Administration, for Intergovernmental Personnel Act,5 prize example, the office called 18F routinely partners harmful biases that might result from the use with government agencies to help them build and of the AI system as well as the biases that competitions, cooperative research and buy technologies. Similarly, the United States might result from alternative systems (such development agreements with private Digital Service (which is within the Executive as an incumbent system that the AI system institutions or universities, and consultation Office of the President) has a staff of technologists would augment or replace). Because different with external technical advisors and subject- whose job is to help agencies build better types of bias pose different types of harms, matter experts. technological tools. While the two entities have different approaches—18F acts more like an the outcome of the evaluation will depend on 4. Obtaining AI Systems agencies’ unique circumstances and priorities information intermediary and the Digital Service serves as an alternative source for information and the consequences posed by those harms Decisions about whether to obtain an AI system can involve important trade-offs. technology contracts—both could aid agencies with in those contexts. obtaining, developing, and using different AI Obtaining AI systems from external sources techniques. might allow agencies to acquire more 4 While the term bias has a technical, statistical 8 See, e.g., Paperwork Reduction Act, 44 U.S.C. meaning, the Administrative Conference here uses sophisticated tools than they could design on 3501–20. the term more generally, to refer to common or 9 See, e.g., 5 U.S.C. 552a(e), (g), & (p); 44 U.S.C. systematic errors in decision making. 5 5 U.S.C. 3371–76. 3501 note.

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throughout the entire life cycle of an AI knowledge and power to be accountable for regular oversight of the system, taking into system from development to retirement and decisions made or aided by AI techniques. account their system-level risk management, assess those risks, as well as associated Finally, there may be some circumstances authorization to operate, regular monitoring controls, on an ongoing basis. In designing in which, for reasons wholly apart from responsibilities, and their broader enterprise and deploying AI systems, agencies should decisional accuracy, agencies may wish to risk management responsibilities.16 consider using relevant privacy risk have decisions be made without reliance on Successful internal oversight requires management frameworks developed through AI techniques, even if the law does not advance and ongoing planning and open, multi-stakeholder processes.10 require it. In some contexts, accuracy and consultation with the various offices in an fairness may not be the only relevant values agency that will be affected by the agency’s 7. Security at stake. In making decisions about their AI use of an AI system, including its legal, Agencies should consider the possibility systems, agencies may wish to consider policy, financial, human resources, that AI systems might be hacked, whether people will perceive the systems as internally-facing ombuds, and technology manipulated, fooled, evaded, or misled, unfair, inhumane, or otherwise offices. Agencies’ oversight plans should including through manipulation of training unsatisfactory.12 address how the agencies will pay for their data and exploitation of model sensitivities. oversight mechanisms and how they will Agencies must ensure not only that their data 9. Oversight respond to what they learn from their are secure, but also that their AI systems are It is essential that agencies’ AI systems be oversight. trained on those data in a secure manner, subject to appropriate and regular oversight Agencies should establish a protocol for make forecasts based on those data in a throughout their lifespans. There are two regularly evaluating AI systems throughout secure way, and otherwise operate in a general categories of oversight: External and the systems’ lifespans. That is particularly secure manner. Agencies should regularly internal. Agencies’ mechanisms of internal true if a system or the circumstances in consider and evaluate the safety and security oversight will be shaped by the demands of which it is deployed are liable to change over of AI systems, including resilience to external oversight. Agencies should be time. In these instances, review and vulnerabilities, manipulation, and other cognizant of both forms of oversight in explanation of the system’s functioning at malicious exploitation. In designing and making decisions about their AI systems. one stage of development or use may become deploying AI systems, agencies should External oversight of agencies’ uses of AI outdated due to changes in the system’s consider using relevant government guidance systems can come from a variety of underlying models. To enable that type of or voluntary consensus standards and government sources, including inspectors oversight, agencies should monitor and keep frameworks developed through open, multi- general, externally facing ombuds, the track of the data being used by their AI stakeholder processes.11 Government Accountability Office, and systems, as well as how the systems use Congress. In addition, because agencies’ uses 8. Decisional Authority those data. Agencies may also wish to secure of AI systems might lead to litigation in a input from members of the public or private Agencies should be mindful that most AI number of circumstances, courts can also evaluators to improve the likelihood that systems will involve human beings in a range play an important role in external oversight. they will identify defects in their AI systems. of capacities—as operators, customers, Those affected by an agency’s use of an AI To make their oversight systems more overseers, policymakers, or interested system might, for example, allege that use of effective, agencies should clearly define goals members of the public. Human factors may the system violates their right to procedural for their AI systems. The relevant question sometimes undercut the value of using AI due process.13 Or they might allege that the for oversight purposes will often be whether systems to make certain determinations. AI system’s determination violated the the AI system outperforms alternatives, There is a risk, for example, that human Administrative Procedure Act (APA) because which may require agencies to benchmark 14 operators will devolve too much it was arbitrary and capricious. When an AI their systems against the status quo or some responsibility to AI systems and fail to detect system narrows the discretion of agency hypothetical state of affairs. cases in which the AI systems yield personnel, or fixes or alters the legal rights Finally, AI systems can affect how inaccurate or unreliable determinations. That and obligations of people subject to the agencies’ staffs do their jobs, particularly as risk may be acceptable in some settings— agency’s action, affected people or entities agency personnel grow to trust and rely on such as when the AI system has recently might also sue on the ground that the AI the systems. In addition to evaluating and been shown to perform significantly better system is a legislative rule adopted in overseeing their AI systems, agencies should than alternatives—but unacceptable in violation of the APA’s requirement that pay close attention to how agency personnel others. legislative rules go through the notice-and- interact with those systems. Similarly, if agency personnel come to rely comment process.15 Agencies should reflexively on algorithmic results in consider these different forms of potential Administrative Conference Recommendation exercising discretionary powers, use of an AI external oversight as they are making and 2020–3 system could have the practical effect of documenting decisions and the underlying Agency Appellate Systems curbing the exercise of agencies’ discretion or processes for these AI systems. shifting it from the person who is supposed Agencies should also develop their own Adopted December 16, 2020 internal evaluation and oversight to be exercising it to the system’s designer. In Recommendation 2016–4,1 the mechanisms for their AI systems, both for Agencies should beware of such potential Administrative Conference offered best initial approval of an AI system and for shifts of practical authority and take steps to practices for evidentiary hearings in ensure that appropriate officials have the administrative adjudications. Paragraph 26 12 Cf. Admin. Conf. of the U.S., Recommendation recommended that agencies provide for 10 See Nat’l Inst. of Standards & Tech. Special 2018–3, Electronic Case Management in Federal ‘‘higher-level review’’ (or ‘‘agency appellate Publication SP–800–37 revision 2, Risk Administrative Adjudication, 83 FR 30,686 (June 29, 2018) (suggesting, in the context of case review’’) of the decisions of hearing-level Management Framework for Information Systems adjudicators.2 This Recommendation offers and Organizations: A System Lifecycle Approach management systems, that agencies consider for Security and Privacy (Dec. 2018); Office of implementing electronic systems only when they Mgmt. & Budget, Exec. Off. of the President, conclude that doing so would lead to benefits 16 See Office of Mgmt. & Budget, Circular A–130, Circular A–130, Managing Information as a without impairing either the objective ‘‘fairness’’ of supra note 10; Office of Mgmt. & Budget, Exec. Strategic Resource (July 28, 2016); see also Nat’l the proceedings or the subjective ‘‘satisfaction’’ of Office of the President, Circular A–123, Inst. of Standards & Tech., NIST Privacy those participating in those proceedings). Management’s Responsibilities for Enterprise Risk Framework: A Tool for Improving Privacy Through 13 Courts would analyze such challenges under Management and Internal Control (July 15, 2016). Enterprise Risk Management, Version 1.0 (Jan. 16, the three-part balancing framework from Mathews 1 Admin. Conf. of the U.S., Recommendation 2020). v. Eldridge, 424 U.S. 319, 335 (1976). 2016–4, Evidentiary Hearings Not Required by the 11 See supra note 10; see also Office of Mgmt. & 14 See 5 U.S.C. 706(2)(A). Courts would likely Administrative Procedure Act, 81 FR 94,314 (Dec. Budget, Exec. Off. of the President, M–21–06, review such challenges under the standard set forth 23, 2016). Guidance for Regulation of Artificial Intelligence in Motor Vehicle Manufacturers Ass’n v. State Farm 2 Recommendation 2016–4 addressed agency Applications (Nov. 17, 2020); Nat’l Inst. for Mutual Automobile Insurance Co., 463 U.S. 29, 43 adjudications in which an evidentiary hearing, Standards & Tech., Framework for Improving (1983). though not governed by the formal hearing Critical Infrastructure Cybersecurity (Apr. 16, 2018). 15 See 5 U.S.C. 553(b)–(c). provisions of the Administrative Procedure Act

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best practices for such review. The administration, and bureaucratic oversight of e. The standard of review; Administrative Conference intends this its appellate system; and sixth, its public f. The allowable and required submissions Recommendation to cover appellate review disclosure of information about its appellate by litigants and their required form and of decisions resulting from (1) hearings system.4 contents; governed by the formal hearing provisions of Most importantly, this Recommendation g. The procedures and criteria for the Administrative Procedure Act (APA) and begins by suggesting that agencies identify, designating decisions as precedential and the (2) evidentiary hearings that are not governed and publicly disclose, the purpose(s) or legal effect of such designations; by those provisions but are required by objective(s) of their appellate systems. h. The record on review and the statute, regulation, or executive order. Appellate systems may have different opportunity, if any, to submit new evidence; Agencies may also decide to apply this purposes, and any given appellate system i. The availability of oral argument or other Recommendation to appellate review of may have multiple purposes. Purposes or form of oral presentation; decisions arising from other hearings, objectives can include the correction of j. The standards of and procedures for depending on their level of formality. errors, inter-decisional consistency of reconsideration and reopening, if available; Appellate review of hearing-level decisions decisions, policymaking, political k. Any administrative or issue exhaustion can be structured in numerous ways. Two accountability, management of the hearing- requirements that must be satisfied before structures are most common. In the first, level adjudicative system, organizational seeking agency appellate or judicial review, litigants appeal directly to the agency head, effectiveness and systemic awareness, and including whether agency appellate review is which may be a multi-member board or the reduction of litigation in federal courts. a mandatory prerequisite to judicial review; commission. In the second, litigants appeal The identification of purpose is important l. Openness of proceedings to the public to an appellate adjudicator or group of both because it dictates (or should dictate) and availability of video or audio streaming adjudicators—often styled as a board or how an agency administers its appellate or recording; council—sitting below the agency head. The system—including what cases it hears and m. In the case of multi-member appellate appellate decision may be the agency’s final under what standards of review it decides boards, councils, and similar entities, the action or may be subject to further appeal them—and provides a standard against authority to assign decision-making authority within the agency (usually to the agency which an agency’s performance can be to fewer than all members (e.g., panels); and head). evaluated. n. Whether seeking agency appellate The Administrative Conference has twice This Recommendation proceeds from the review automatically stays the effectiveness before addressed agency appellate review. In recognition that agency appellate systems of the appealed agency action until the Recommendations 68–6 and 83–3, it vary enormously—as to their purposes or appeal is resolved (which may be necessary provided guidance to agencies when objectives, governing substantive law, size, for appellate review to be mandatory, see 5 establishing new, and reviewing existing, and resources—and that what may be a best U.S.C. 704), and, if not, how a party seeking organizational structures of appellate practice for one system may not always be agency appellate review may request such a review.3 Both recommendations focused on the best practice for another. In offering the stay and the standards for deciding whether best practices that follow, moreover, the the selection of ‘‘delegates’’—individual to grant it. Administrative Conference recognizes that adjudicators, review boards composed of 3. Agencies should include in the (1) an agency’s procedural choices may multiple adjudicators, or panels composed of procedural regulations governing their sometimes be constrained by statute and (2) members of a multi-member agency—to appellate programs: (a) A brief statement or available resources and personnel policies explanation of each program’s review exercise appellate review authority vested in may dictate an agency’s decision as to agency heads (including boards and authority, structure, and decision-making whether and how to implement the best components; and (b) for each provision based commissions). Recommendation 83–3 also practices that follow. The Administrative addressed when agencies should consider on a statutory source, an accompanying Conference makes this Recommendation citation to that source. providing appellate review as a matter of subject to these important qualifications. right and when as a matter of discretion, and, 4. When revising existing or adopting new in the case of the latter, under what criteria. Recommendation appellate rules, agencies should consider the appellate rules (Rules 400–450) in the With the exception of the appropriate Objectives of Appellate Review standard for granting review, this Administrative Conference’s Model Rules of Agency Adjudication (rev. 2018). Recommendation’s focus lies elsewhere. It 1. Agencies should identify the objective(s) 5. When materially revising existing or addresses, and offers best practices with of appellate review; disclose those objectives adopting new appellate rules, agencies respect to, the following subjects: First, an in procedural regulations; and design rules should use notice-and-comment procedures agency’s identification of the purpose or and processes, especially for scope and or other mechanisms for soliciting public objective served by its appellate review; standard of review, to serve them. input, notwithstanding the procedural rules second, its selection of cases for appellate Procedures for Appellate Review exemption of 5 U.S.C. 553(b)(A), unless the review, when review is not required by 2. Agencies should promulgate and publish costs clearly outweigh the benefits of doing statute; third, its procedures for review; procedural regulations governing agency so. fourth, its appellate decision-making appellate review in the Federal Register and processes; fifth, its management, Case Selection for Appellate Review codify them in the Code of Federal Regulations. These regulations should cover 6. Based on the agency-specific objectives (APA) (5 U.S.C. 554, 556–57), is required by statute, all significant procedural matters pertaining of appellate review, agencies should decide regulation, or executive order. Those adjudications, to agency appellate review, including but not whether the granting of review should be which are often as formal as APA adjudications in limited to the following: mandatory or discretionary (assuming they practice, far outnumber so-called APA have statutory authority to decide); if adjudications. Although Recommendation 2016–4 a. The objectives of the agency’s appellate addresses only non-APA adjudications, most of its review system; discretionary, the criteria for granting review best practices are as applicable to APA b. The timing and procedures for initiating should track the objectives of the appellate adjudications as non-APA adjudications. Some review, including any available interlocutory system, and they should be published in the such practices, in fact, are modeled on the APA’s review; procedural regulations. formal hearing provisions. c. The standards for granting review, if 7. Agencies should consider implementing 3 Admin. Conf. of the U.S., Recommendation 83– review is discretionary; procedures for sua sponte appellate review of 3, Agency Structures for Review of Decisions of d. The standards for permitting non-appealed hearing-level decisions, as well Presiding Officers Under the Administrative participation by interested persons and as for the referral of cases or issues by Procedure Act, 48 FR 57,461 (Dec. 30, 1983); amici; hearing-level adjudicators to the appellate Admin. Conf. of the U.S., Recommendation 68–6, entity for interlocutory review. Delegation of Final Decisional Authority Subject to Discretionary Review by the Agency, 38 FR 19,783 4 Christopher J. Walker & Matthew Lee Wiener, Appellate Decision-Making Processes and (July 23, 1973). Both recommendations concerned Agency Appellate Systems (Dec. 14, 2020) (report Decisions only the review of decisions in proceedings to the Admin. Conf. of the U.S.), https:// governed by the formal hearing provisions of the www.acus.gov/report/final-report-agency-appellate- 8. Whenever possible, agencies should APA. Their principles, though, are not so confined. systems. consider maintaining electronic case

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management systems that ensure that hearing having prepared indexes and digests—with Administrative Conference Recommendation records are easily accessible to appellate annotations and comments, as appropriate— 2020–4 adjudicators. Such systems may include the to identify those decisions and their Government Contract Bid Protests Before capability for electronic filing. significance. Agencies 9. Although the randomized assignment of 17. As appropriate, agency appellate cases to appellate adjudicators is typically an systems should communicate with agency Adopted December 17, 2020 appropriate docketing method for an agency rule-writers and other agency policymakers— Federal law establishes policies and appellate system, agencies should consider and institutionalize communication procedures governing how federal executive the potential benefits of sorting and grouping mechanisms—to address whether recurring agencies procure supplies and services.1 The appeals on the appellate docket, such as issues in their decisions should be addressed primary source of these policies and reduced case processing times and more by rule rather than precedential case-by-case procedures is the Federal Acquisition efficient use of adjudicators’, staff attorneys’, adjudication. Regulation (FAR),2 which applies to all and law clerks’ skills and time. Criteria for 18. The Office of the Chairman of the executive-agency acquisitions of supplies sorting and grouping cases may include the Administrative Conference should provide and services with appropriated funds by and size of a case’s record, complexity of a case’s for, as authorized by 5 U.S.C. 594(2), the for the use of the federal government, unless issues, subject matter of a case, and similarity ‘‘interchange among administrative agencies expressly excluded. Other relevant policies of a case’s legal issues to those of other of information potentially useful in and procedures are found in federal statutes pending cases. improving’’ agency appellate systems. The and agencies’ own procurement rules. 10. Consistent with the objectives of the subjects of interchange might include If a vendor believes a federal executive agency’s appellate system and in light of the electronic case management systems, agency has not complied with the law or the costs of time and resources, agencies should procedural innovations, quality-assurance terms of a solicitation, it may file what is consider adopting an appellate model of reviews, and common management called a bid protest—that is, a written judicial review in which the standard of problems. objection to a government agency’s conduct review is not de novo with respect to in acquiring supplies and services for its findings of fact and application of law to Public Disclosure and Transparency direct use or benefit.3 Responding to bid facts. For similar reasons, many agencies 19. Agencies should disclose on their protests can require agencies to reevaluate should consider limiting the introduction of websites any rules (sometimes styled as their procurement processes and, sometimes, new evidence on appeal that is not already ‘‘orders’’), and statutes authorizing such make improvements. That, in turn, results in in the administrative record from the rules, by which an agency head has delegated more competitive, fairer, and more hearing-level adjudication. review authority to appellate adjudicators. transparent procurement processes, 11. Taking agency resources into account, 20. Regardless of whether the Government benefiting vendors, agencies, and ultimately agencies should emphasize concision, in the Sunshine Act (5 U.S.C. 552b) governs the public. readability, and plain language in their their appellate review system, agencies To file a bid protest, an actual or appellate decisions and explore the use of should consider announcing, livestreaming, prospective vendor must show that it is an decision templates, summary dispositions, and maintaining video recordings on their ‘‘interested party’’—meaning that its direct economic interest would be adversely and other quality-improving measures. websites of appellate proceedings (including 12. Agencies should establish clear criteria affected by the award of, or failure to award, oral argument) that present significant legal and processes for identifying and selecting the contract in question 4—and that it and policy issues likely to be of interest to appellate decisions as precedential, suffered prejudice because of an error in the regulated parties and other members of the especially for appellate systems with procurement process. Ordinarily, vendors public. Brief explanations of the issues to be objectives of policymaking or inter-decisional who meet those requirements may file bid addressed by oral argument may usefully be consistency. protests in any of three forums: (1) The included in website notices of oral argument. 13. Agencies should assess the value of procuring agency,5 (2) the Government 21. Agencies should include on their oral argument and amicus participation in Accountability Office (GAO),6 or (3) the websites brief and accessibly written their appellate system based on the agencies’ explanations as to how their internal identified objectives for appellate review and 1 See Federal Acquisition Regulation, 48 CFR ch. decision-making processes work and, as should establish rules governing both. 1; see also Competition in Contracting Act of 1984, Criteria that may favor oral argument and appropriate, include links to explanatory Public Law 98–369, div. B, tit. VII, 98 Stat. 494, amicus participation include issues of high documents appropriate for public disclosure. 942–85 (codified, as amended, in various parts of public interest; issues of concern beyond the Specific subjects that agencies should the U.S. Code); Federal Acquisition Streamlining consider addressing include: The process of Act of 1994, Public Law 103–355, 108 Stat. 3243; parties to the case; specialized or technical Federal Acquisition Reform Act of 1996, Public Law matters; and a novel or substantial question assigning cases to adjudicators (when fewer than all of the programs’ adjudicators 104–106, 110 Stat. 186 (later renamed the Clinger- of law, policy, or discretion. Cohen Act of 1996); Exec. Order No. 12,979, Agency participate in a case), the role of staff, and the Procurement Protests, 60 FR 55,171 (Oct. 25, 1995). Administration, Management, and order in which cases are decided. 2 See 48 CFR ch. 1. Bureaucratic Oversight 22. When posting decisions on their 3 See Admin. Conf. of the U.S., Recommendation 14. Agency appellate systems should websites, agencies should distinguish 95–5, Government Contract Bid Protests, 60 FR promptly transmit their precedential between precedential and non-precedential 43,108, 43,113 (Aug. 18, 1995). decisions to all appellate program decisions. Agencies should also include a 4 See 4 CFR 21.0(a)(1) (defining ‘‘interested party’’ adjudicators and, directly or through hearing- brief explanation of the difference. for purposes of bid protest proceedings before the level programs, to hearing-level adjudicators 23. When posting decisions on their Government Accountability Office); 48 CFR 33.101 (as appropriate). Appellate programs should websites, agencies should consider (defining ‘‘interested party’’ for purposes of bid including, as much as practicable, brief protest proceedings before procuring agencies); include in their transmittals, when feasible, CliniComp Int’l, Inc. v. United States, 904 F.3d brief summaries of the decision. summaries of precedential decisions and, for 1353, 1358 (Fed. Cir. 2018) (defining ‘‘interested 15. Agencies should notify their precedential decisions at least, citations to party’’ for purposes of 28 U.S.C. 1491(b), which adjudicators of significant federal court court decisions reviewing them. covers actions in the Court of Federal Claims). decisions reviewing the agencies’ decisions 24. Agencies should include on their There are some instances in which Congress has and, when providing notice, explain the websites any digests and indexes of decisions restricted the ability to file a protest, regardless of significance of those decisions to the they maintain. It may be appropriate to whether a vendor is an ‘‘interested party.’’ See, e.g., program. As appropriate, agencies should remove material exempt from disclosure 41 U.S.C. 4106(f) (limiting the ability to protest the issuance or proposed issuance of a task or delivery notify adjudicators if the agency will not under the Freedom of Information Act or order); 48 CFR 16.505(a)(10) (same). acquiesce in a particular decision of the other laws. 5 See 48 CFR 33.103. federal courts of appeals. 25. Agencies should affirmatively solicit 6 See 31 U.S.C. 3552(a), 3553(a). For civilian 16. Agencies in which decision making feedback concerning the functioning of their agencies, GAO has exclusive jurisdiction over relies extensively on their own precedential appellate systems and provide a means for protests of task and delivery orders in excess of $10 decisions should consider preparing or doing so on their websites. million, unless the protest is on the grounds that

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United States Court of Federal Claims requirements for the process. For example, denies or dismisses the protest and takes (COFC),7 and depending on where the protest although the FAR states that ‘‘[a]gencies shall some adverse action,24 a follow-on protest at is initiated, may be able to file protests in make their best efforts to resolve agency GAO may automatically prevent the contract series. For example, a protest may be filed protests within 35 days after [an agency-level from being awarded or performed (if the first at the agency, then (if unsuccessful at protest] is filed,’’ 13 that language is hortatory requisite filing deadlines are met) until GAO the agency) at GAO, and then (if again and does not establish any binding deadlines denies or dismisses the protest.25 Thus, when unsuccessful) at COFC.8 The procedural tools for agency decisions. Nothing in the FAR an agency-level protest is followed by available in a given forum, along with other does. The failure to provide for any binding another protest at GAO, delays in strategic and cost considerations, typically deadlines distinguishes the FAR from other procurements can be substantial. drive vendors’ decisions about where to file federal procurement statutes, such as the Protesters, agencies, and the public would their bid protests. Contract Disputes Act,14 which sets or all benefit from an improved agency-level Bid protests filed with procuring agencies requires contracting officers to set firm protest system. Protesters would benefit are commonly referred to as agency-level deadlines for deciding most claims 15 and because agency-level protests are typically protests. Agency-level protests have provides that the passage of the deadline for the least formal and least costly types of bid important benefits for the public, contractors, a claim means the claim is deemed denied.16 protest procedures. Agencies would benefit procuring agencies, and COFC and GAO. By Third, some vendors report being from an improved agency-level protest ‘‘provid[ing] for inexpensive, informal, dissuaded by their inability to compel system because greater use of agency-level procedurally simple, and expeditious production of the procurement record as part protests means more agency control over the resolution of protests,’’ 9 agency-level protest of an agency-level protest.17 The FAR gives timing and conduct of protests and more mechanisms allow small businesses (among disappointed offerors the right to an agency opportunities for agencies to superintend other vendors) to affordably contest agencies’ debriefing—a procedure whereby contracting their own procurement processes. And the procurement decisions. They also give personnel provide offerors with an public would benefit from more competitive, procuring agencies the chance to review and explanation of the agency’s evaluation fairer, and more transparent agency improve their own procurement practices. process and an assessment of the offerors’ procurements. And they funnel some protests away from proposals. But nothing in the FAR guarantees Because an improved agency-level protest COFC and GAO, reducing the likelihood that vendors the right to view the procurement system is of significant value to contractors, the number of protests will overwhelm those record itself. The FAR provides only that agencies, and the public, this institutions. agencies ‘‘may exchange relevant Recommendation identifies changes to make Vendors, however, seldom file agency-level information’’ with agency-level protesters.18 it more likely vendors will avail themselves protests. Although there is little data on the By contrast, vendors who file bid protests at of agency-level protest procedures. The number of agency-level protests filed each GAO may demand to see the entire record of recommended changes reflect three year, available evidence suggests that the procurement, and procuring agencies overarching principles—transparency, substantially more protests are filed with must respond to such requests within simplicity, and predictability—meant to COFC and GAO each year than with twenty-five days and produce the responsive address contractors’ principal concerns about 10 procuring agencies. There are several documents within thirty days (unless they agency-level protest systems. reasons why vendors may forego agency-level are withheld for a valid reason).19 Recommendation protests. Those reasons implicate the themes Finally, some vendors deem agency-level of transparency, predictability, and protests to be too risky.20 In many cases, Identification of Decisions Subject to accountability. vendors who do not obtain relief through an Agency-Level Protests First, some vendors report shying away agency-level protest will seek relief from 1. Agencies should clearly identify which from agency-level protests because they GAO by pursuing their protest in that forum. categories of procurement decisions may or perceive the agency as unlikely to change its But GAO’s deadline for filing such ‘‘follow- 11 may not be made the subjects of agency-level decision. Sometimes, for instance, the on protests’’ often begins to run as soon as protests. official responsible for soliciting or awarding the vendor has actual or constructive notice a procurement contract is also responsible for of some ‘‘adverse agency action,’’ which can Transparency for the Process and Personnel handling any agency-level protests that are occur before a protester receives the decision for Agency-Level Protests filed regarding the procurement. This in its agency-level protest.21 In this way, 2. Agencies should formalize and compile perception of a pre-judgment by the agency delayed notification about an agency’s in a document that is publicly available may cause some vendors to file their protests decision in a bid protest can seriously online the procedures they apply in at GAO or COFC, rather than at the agency prejudice protesters’ rights at GAO.22 This adjudicating agency-level protests. In so level. causes some vendors to forego agency-level doing, they should be guided by the Second, some vendors report that they protests altogether.23 principles set out in Recommendation 2018– view agency-level protest processes as The perception that agency-level protests 5, Public Availability of Adjudication Rules. opaque.12 Agencies do not publish or provide lack transparency, predictability, and 3. Agencies should clearly identify who comprehensive data on their bid protest accountability also makes it more likely that within the agency will adjudicate an agency- decisions. And the FAR and agency-specific level protest. They should consider bid protest rules establish few hard-and-fast protesters who do file at the agency level and whose protests are denied will file follow-on designating at least one Agency Protest protests with GAO or COFC. Such follow-on Official (APO)—a person who specializes in the order increases the scope, period, or maximum protests not only tax the limited resources of handling agency-level protests—to oversee value of the contract. See 41 U.S.C. 4106(f); 48 CFR and coordinate agency-level protests and 16.505(a)(10). GAO and COFC, but also can disrupt activities at procuring agencies. For instance, hear protests brought to a level above the 7 See 28 U.S.C. 1491(b). contracting officer. Agencies lacking the 8 See Admin. Conf. of the U.S., Info. Interchange just as the filing of an agency-level protest automatically prohibits the contract from resources to designate their own APO might Bull. No. 007, Agency Bid Protests (June 2020), consider sharing an APO with other agencies. https://www.acus.gov/fact-sheet/iib-007-agency-bid- being awarded or performed until the agency protests. Notice of the Timeline for Agency-Level 9 See Exec. Order. No. 12,979, Agency 13 48 CFR 33.103(g). Protests Procurement Protests, 60 FR 55,171, 55,171 (Oct. 14 41 U.S.C. 7101–09. 4. Agencies should consider adopting 25, 1995). 15 See id. § 7103(f)(1)–(2). 10 presumptive timelines for agency-level See Christopher Yukins, Stepping Stones to 16 See id. § 605(c)(5). Reform: Making Agency-Level Bid Protests Effective 17 Yukins, supra note 10, at 39. for Agencies and Bidders by Building on Best 24 48 CFR 33.103(f). Under certain circumstances, 18 48 CFR 33.103(g) (italics added). Practices from Across the Federal Government 12– the agency can override the regulatory stay for 19 13 (May 1, 2020) (report to the Admin. Conf. of the 4 CFR 21.3(c)–(d); 48 CFR 33.104(a). agency-level protests. See 48 CFR 33.103(f)(1), (f)(3). 20 U.S.), https://www.acus.gov/report/agency-level- Yukins, supra note 10, at 31. 25 31 U.S.C. 3553(c)(1), (d)(3). Under certain bid-protests-final-report. 21 See 4 CFR 21.0(e), 21.2. circumstances, the agency can override the 11 Id. at 23. 22 See Yukins, supra note 10, at 13–14, 18–19. statutory stay for protests to GAO. See 31 U.S.C. 12 Id. at 13. 23 See id. at 23. 3553(c)–(d); 48 CFR 33.104(b)–(c).

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protests, similar to the ones under the Administrative Conference Recommendation preside over (1) hearings governed by the Contract Disputes Act. Agencies should also 2020–5 formal hearing provisions of the make best efforts to notify protesters of the Administrative Procedure Act (APA) 7 and (2) Publication of Policies Governing Agency timelines applicable to their agency-level hearings that are not governed by those Adjudicators protests. provisions but are required by statute, 5. Agencies should clearly and Adopted December 17, 2020 regulation, or executive order. It also covers officials (agency heads excluded) who review immediately provide written notice to [NOTE: Appendix B referenced in this protesters of any adverse agency action Recommendation has been omitted from this hearing-level adjudicators’ decisions on affecting the rights of the protester under the notice because of the inaccessible images it appeal. For ease of reference, this challenged procurement. Agency rules contains. The full appendix may be found Recommendation refers to the covered adjudicators as either ‘‘administrative law should provide that protests are deemed online at https://www.acus.gov/ judges’’ (ALJs) or ‘‘administrative judges’’ denied after a specified number of days recommendation/publication-policies- (AJs).8 Agencies may decide to include on without a decision and that agencies may governing-agency-adjudicators.] Federal agency officials throughout the their websites the disclosures identified in grant case-specific extensions based on this Recommendation for other adjudicators, identified criteria. country preside over hundreds of thousands of adjudications each year.1 As the depending on the level of formality of the Compiling the Record and Making It Administrative Conference has previously proceedings over which they preside and Available observed, litigants, their lawyers, and other whether they serve as full-time adjudicators. Agencies may also decide to make similar 6. Agencies should make available to members of the public benefit from having ready online access to procedural rules, disclosures with respect to agency heads if protesters as much of the procurement record their websites do not already provide as is feasible. To address confidential decisions, and other key materials associated with adjudications.2 They also benefit from sufficient information. information in the record, agencies should having ready online access to the policies This Recommendation focuses on policies consider using tools such as enhanced and practices by which agencies appoint and and practices relating to adjudicators that debriefings. oversee administrative law judges and other agencies should disclose, including those 7. Agencies should consider adopting a adjudicators. The availability of these addressing appointment and qualifications; thirty-day deadline, running from the date a policies and practices helps inform the compensation (including salaries, bonuses, protest is filed, for providing protesters with public about, among other things, any actions and performance incentives); duties and as much of the procurement record as is agencies have taken to ensure the responsibilities; supervision and assignment feasible. impartiality of administrative adjudicators 3 of work; position within agencies’ and promotes an understanding of organizational hierarchies; methods of Protecting Against Adverse Consequences adjudicators’ constitutional status under the evaluating performance; limitations on ex 8. Although the Federal Acquisition Appointments Clause and other parte communications and other policies Regulation (FAR) prohibits the award of a constitutional provisions. The ensuring separation between adjudicative contract or continued performance under an Administrative Conference acknowledges and enforcement functions; recusal and awarded contract during an agency-level ongoing litigation regarding the disqualification; the process for review of protest, agencies should provide for a short constitutional status of many agency adjudications; and discipline and removal. extension of the stay after a final decision in adjudicators and the continuing validity of Many of the policies and practices an agency-level bid protest as permitted by the means and circumstances of their applicable to ALJs governing these matters the FAR. The short extension should be of appointment and removal.4 are already publicly available because they are in the APA, Office of Personnel sufficient duration (e.g., five days) to give the Agencies may benefit from disclosures Management rules, or other legal authorities.9 protester time to bring a follow-on protest at about agency adjudicators because it allows Nevertheless, agencies that employ ALJs can the Government Accountability Office (GAO) them to compare their own policies with take steps to improve the public’s access to or the United States Court of Federal Claims those made publicly available by other this information. after the agency’s decision. agencies. Agencies’ proactive disclosures, which may sometimes already be required ALJs, in any case, make up a small portion 9. Congress should provide that, if a under the Freedom of Information Act and of federal adjudicators. There are many more protester promptly files a GAO protest after the E-Government Act, may also be more AJs than ALJs.10 AJs are regulated by a an adverse decision in an agency-level cost-effective than agencies’ responding to complex mix of statutory provisions, protest, the agency shall not award the individual requests for information.5 including civil service laws, agency rules contract or commence performance under the Like other recent recommendations codified in the Code of Federal Regulations, contract during the pendency of the GAO regarding adjudicators,6 this and agency-specific policies that take a protest, subject to potential override in Recommendation pertains to officials who variety of forms. Many types of information urgent and compelling circumstances. about AJs reside in these sources, but they 11 10. GAO should amend its bid protest 1 See Admin. Conf. of the U.S., Recommendation may be difficult to find. Some relevant procedures to ensure that follow-on protests 2016–2, Aggregate Agency Adjudication, 81 FR at GAO are handled on an expedited basis, 40,260, 40,260 (June 21, 2016). 7 See 5 U.S.C. 554, 556–57. to the extent feasible. 2 Admin. Conf. of the U.S., Recommendation 8 The vast majority of ALJs work at the Social 2018–5, Public Availability of Adjudication Rules, Security Administration. AJs work at many Publishing Data on Agency-Level Protests 84 FR 2142 (Feb. 6, 2019); Admin. Conf. of the U.S., different agencies under a variety of titles, 11. Agencies should collect and annually Recommendation 2017–1, Adjudication Materials including not only ‘‘Administrative Judge’’ but also, publish data about the bid protests they on Agency Websites, 82 FR 31,039 (July 5, 2017). by way of example, ‘‘Hearing Officer,’’ 3 adjudicate. To the extent feasible, the data Cf. Admin. Conf. of the U.S., Recommendation ‘‘Immigration Judge,’’ ‘‘Veterans Law Judge,’’ 2018–4, Recusal Rules for Administrative ‘‘Administrative Patent Judge,’’ and should at least include what the GAO Adjudicators, 84 FR 2139 (Feb. 6, 2019). ‘‘Administrative Appeals Judge.’’ currently provides in its annual reports about 4 See, e.g., Lucia v. SEC, 138 S. Ct. 2044 (2018); 9 5 U.S.C. 554, 557, 3105, 4301, 5372, 7521; 5 CFR the bid protests it adjudicates (e.g., the Arthrex v. Smith & Nephew, 941 F.3d 1320 (Fed. pt. 930, subpt. B; Exec. Order No. 13,843, Executive number of bid protests filed with the agency; Cir. 2019), cert. granted, __S. Ct. __(Oct. 13, 2020) Order Excepting Administrative Law Judges from the effectiveness rate of agency-level bid (No. 19–1434). the Competitive Service, 83 FR 32,755 (July 13, protests (the ratio of protests sustained or in 5 FOIA Improvement Act of 2016, Public Law 2018) (issued July 10, 2018). which corrective action is afforded versus 114–185, 2, 130 Stat. 538, 538 (amending 5 U.S.C. 10 Kent Barnett et al., Non-ALJ Adjudicators in total agency-level protests filed); the number 552(a)(2)); E-Government Act of 2002, Public Law Federal Agencies: Status, Selection, Oversight, and 140–347, 206, 116 Stat. 2899, 2916 (amending 44 Removal 1 (Sept. 24, 2018) (report to the Admin. of merits decisions by the agency; the U.S.C. 3501). Conf. of the U.S.), https://www.acus.gov/report/non- number of decisions sustaining the protest; 6 See, e.g., Admin. Conf. of the U.S., alj-adjudicators-federal-agencies-status-selection- the number of decisions denying the protest; Recommendation 2018–4, Recusal Rules for oversight-and-removal-1. and the time required for bid protests to be Administrative Adjudicators, 84 FR 2139 (Feb. 6, 11 Leigh Anne Schriever, Public Availability of resolved). 2019). Information About Adjudicators 10 (Nov. 23, 2020)

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sources may not be publicly available, i. Supervision of adjudicators by higher- [Agency] is committed to ensuring that all including internal administrative and level officials; hearings and appeals are conducted in a fair personnel manuals, position descriptions, j. Evaluation of adjudicators, including and equitable manner. Parties are entitled to and labor agreements. This is particularly quantitative and qualitative methods for a due process hearing presided over by an true with respect to certain kinds of policies, appraising adjudicators’ performances, such impartial, qualified ALJ. ALJs resolve cases such as those relating to compensation and as case-processing goals, if any; and involving [kinds of cases ALJs hear] in a fair, performance incentives.12 Of course, the k. Discipline and removal of adjudicators. transparent, and accessible manner. Our ALJs Administrative Conference recognizes that Agencies may choose not to provide access are appointed by [agency official], and are some of these agency policies and practices to policies covered by a Freedom of [describe qualifications]. ALJs are paid may qualify for an exemption under the Information Act exemption. according to the [pay scale for ALJs with link Freedom of Information Act,13 Privacy Act,14 2. On the same web page as the to the scale] scale set by statute under 5 or other laws and executive-branch policies. information described in Paragraph 1 U.S.C. 5372, subject to annual pay Agency websites are the most helpful appears, each adjudicative agency should adjustments. location for agencies to make relevant post links to key legal documents or, when Cases are assigned to ALJs [in each policies and practices publicly available. links are not available, citations to such geographic office] in rotation so far as Individuals most naturally seek information documents. These documents may include practicable. The ALJ assigned to your case is about administrative policies and practices (a) federal statutes, including relevant responsible for [job duties, like taking on agencies’ websites. Agencies can situate provisions of the Administrative Procedure evidence, hearing objections, issuing information about their adjudicators in a Act (APA) and other laws applicable to ALJs decisions]. ALJs are required by statute to logical and easily identifiable place on their and AJs; (b) agency-promulgated rules perform their functions impartially. 5 U.S.C. websites and structure their websites to regarding adjudicators, including Office of 556(b). To ensure impartiality, they do not Personnel Management rules applicable to synthesize policies in plain language and take part in investigative or enforcement ALJs; (c) publicly available agency- link to information from many different activities, nor do they report to officials in promulgated guidance documents relating to sources.15 the [agency]’s investigative or enforcement adjudicators, including manuals, bench This Recommendation encourages agencies components. 5 U.S.C. 554(d), 3105. The ALJ books, and other explanatory materials; (d) assigned to your case may not communicate to post on their websites clear and readily delegations of authority; and (e) position accessible descriptions of the policies privately about the facts of your case with descriptions. To the extent that some policies other agency officials. [More details on governing the appointment and oversight of concerning adjudicators may be a matter of ALJs and AJs, and to include links to relevant [agency]’s rules about communicating with custom, such as assignment of ALJs are available [location of agency- legal documents. How, exactly, they should nonadjudicative duties, each adjudicative do so will of course depend on the specific specific ex parte prohibitions]]. agency should consider documenting those By law, [agency] does not reward or features of their adjudicative programs and policies to make them publicly accessible to their institutional needs. discipline ALJs for their decisions. A federal the extent practicable. statute provides that [agency] may remove, or Recommendation 3. The web page containing the take certain other disciplinary actions, information described in Paragraphs 1 and 2 against an ALJ it employs only for good cause 1. Each adjudicative agency should should present the materials in a clear, prominently display on its website a short, established and determined by the Merit logical, and comprehensive fashion. One Systems Protection Board on the record after straightforward description of all generally possible method of presenting this applicable policies and practices, along with opportunity for hearing before the Board. 5 information appears in Appendix A. The U.S.C. 7521. the legal authority, governing the appendix gives one example for ALJs and appointment and oversight of Administrative The agency has adopted rules of recusal another for AJs. [link] that allow a participant to request that Law Judges (ALJs) and Administrative Judges 4. If an agency’s mission consists (AJs), including, as applicable, those that the ALJ in charge of his or her case be exclusively or almost exclusively of disqualified if the participant believes the address: conducting adjudications, the agency should ALJ cannot fairly and impartially decide the a. Procedures for assessing, selecting, and provide a link to the web page containing the case. appointing candidates for adjudicator information described in Paragraphs 1 and 2 If you are dissatisfied with an ALJ’s positions and the legal authority under on the agency’s homepage. If conducting decision, you can request reconsideration which such appointments are made; adjudications is one of an agency’s many from the ALJ or appeal that decision to b. Placement of adjudicators within functions, the agency should provide a link [agency office/official]. Visit [link] for agencies’ organizational hierarchies; to these materials from a location on the information on appealing an ALJ decision. c. Compensation structure and website that is both dedicated to adjudicative [Agency office/official] may also review your performance incentives, such as bonuses, materials and logical in terms of a user’s case on [its/his or her] own initiative if there nonmonetary awards, and promotions; likelihood of finding the documents in the is an issue with the ALJ’s decision. d. Procedures for assigning cases; selected location. One example would be an For Further Information: e. Assignment, if any, of nonadjudicative enforcement or adjudication page or the • Hiring process: [link] duties to adjudicators; homepage for the component in which a • f. Limitations on ex parte communications, particular category of adjudicators works. Pay rates: [link] • How cases are assigned to ALJs: [link] including between adjudicators and other Citations to agency web pages that currently • agency officials, related to the disposition of provide this information in a way that makes Communicating with ALJs (ex parte communications): [link] individual cases, as well as other policies it easy for the public to locate, as well as • ensuring a separation of adjudication and descriptions of how to find those pages on Process for addressing allegations that an enforcement functions; agency websites, appear in Appendix B. ALJ has a conflict of interest (recusal and disqualification procedures): [link] g. Standards for recusal by and Appendix A • How to appeal an ALJ decision: [link] disqualification of adjudicators; • Case-processing goals: [link] h. Administrative review of adjudicators’ Sample Website Text for Administrative Law • Process for addressing allegations of ALJ decisions; Judges misconduct: [link] About Our Administrative Law Judges See also: (report to the Admin. Conf. of the U.S.), https:// • www.acus.gov/report/final-report-public- Administrative Law Judges (ALJs) at Statutory provisions governing ALJs: 5 availability-information-about-agency-adjudicators. [agency] conduct hearings and decide cases U.S.C. 554, 557, 3105, 4301, 5372, 7521 • 12 Id. at 7. under [insert name of authorizing act]. They OPM’s regulations governing ALJs: 5 CFR 13 5 U.S.C. 552. are part of the [agency component in which 930.205–930.207, 930.211 • 14 Id. § 552a. ALJs are located], which is directed by [title MSPB’s regulations governing ALJs: 5 CFR 15 Cf. Admin. Conf. of the U.S., Recommendation of office head] and has offices in [cities]. Visit 1201.127–1201.142 2017–3, Plain Language in Regulatory Drafting, 82 [link to agency organization chart] to see how • [Additional legal provisions governing FR 61,728 (Dec. 29, 2017). [office] relates to other offices at [agency]. ALJs]

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• Executive Orders pertaining to ALJs: E.O. • How cases are assigned to [adjudicator requirement has not always made judicial 13,843 (giving agencies control over the title]: [link] opinions readily accessible to the public, hiring process of ALJs) [add other pertinent • Communicating with [adjudicator title] (ex partly because most courts’ websites lack EOs] parte communications): [link] functions and features that would allow users • Process for addressing allegations that an to easily identify cases about specific topics Sample Website Text for Administrative [adjudicator title] has a conflict of interest Judges or agencies. (recusal and disqualification procedures): The most comprehensive source of agency If agencies have different kinds of [link] litigation materials is the federal courts’ • adjudicators, they should consider providing How to appeal an [adjudicator title] Public Access to Court Electronic Records a separate web page for each. decision: [link] (PACER) service, which provides the public • Case-processing goals: [link] About Our [Insert Adjudicator Title] • with instantaneous access to virtually every Process for addressing allegations of document filed in every federal court. But [Adjudicator title] at [agency] [conduct [adjudicator title] misconduct: [link] PACER searches often cost money, and the hearings and decide cases/review appeals] See also: costs can add up quickly, especially when under [name of authorizing act(s)]. They are • Statutory provisions regarding [adjudicator users are uncertain about what cases or part of the [agency component in which title], including the appointment authority: documents they are trying to find. PACER’s adjudicators are located], which is directed [statutory citations] by [title of office head] and has offices in limited search functionality also makes it • Agency regulations governing [adjudicator difficult to find cases involving particular [cities]. Visit [link to agency organization title]: [CFR provisions] chart] to see how [office] relates to other agencies, statutes, regulations, or types of offices at [agency]. Appendix B agency action. For example, a person [Agency] is committed to ensuring that all interested in identifying ongoing cases to [Note: Appendix B has been omitted from which the United States Fish and Wildlife hearings and appeals are conducted in a fair this notice because of the inaccessible images and equitable manner. Parties are entitled to Service (FWS) is a party would have to it contains. The full appendix may be found search for a host of terms—including ‘‘United a due process hearing presided over by an online at https://www.acus.gov/ States Fish and Wildlife Service,’’ ‘‘U.S. Fish impartial, qualified [adjudicator title]. recommendation/publication-policies- and Wildlife Service,’’ and the names of [Adjudicator title] resolve cases involving governing-agency-adjudicators.] [kinds of cases] in a fair, transparent, and FWS’s recent directors—just to come close to accessible manner. Our [adjudicator title] are Administrative Conference Recommendation identifying all such cases. Even after appointed pursuant to [authorizing statute] 2020–6 conducting all those searches, the person would still have to scroll through and by [agency official] [for terms of [number of Agency Litigation Web Pages years] years], and are [describe eliminate search results involving state fish- qualifications]. [Adjudicator title] are paid Adopted December 17, 2020 and-wildlife agencies and private citizens according to [[the pay scale for the Federal agencies and their component with the same names as FWS’s recent adjudicator with link to the scale] or [the units 1 participate in thousands of court cases directors. Similarly, were a person interested discretion of the agency head]]. every year. Most such cases result in ‘‘agency in finding cases about FWS’s listing of Cases are [describe how cases are litigation materials,’’ which this species under the Endangered Species Act assigned]. The [adjudicator title] assigned to Recommendation defines as including (ESA), PACER would not afford that person your case is responsible for [job duties, like agencies’ publicly filed pleadings, briefs, and any way to filter search results to include taking evidence, hearing objections, issuing settlements, as well as court decisions, where only cases about ESA listings. The person’s decisions]. [Description of policies (if any such materials bear on agencies’ regulatory or only option would be to open and review exist) that ensure the agency component or enforcement activities. documents in potentially thousands of cases. adjudicators remain independent from Public access to agency litigation materials The cost and time involved in performing investigative or enforcement activities]. is desirable for at least two reasons. First, this type of research limit PACER’s [Description of rules about ex parte because agency litigation materials often usefulness as a tool for locating and communications, if any exist]. clarify how the federal government interprets searching agency litigation materials. And [Agency official or body] is responsible for and aims to enforce federal law, they can although paid legal services, such as Westlaw evaluating the quality of [adjudicator title] help people understand their legal and Lexis, have far greater search capabilities decisions, and [agency official or body] obligations. Second, public access to agency than PACER, their costs can dissuade many conducts performance reviews of litigation materials promotes accountable and individuals and researchers. [adjudicator title]. [Agency official/entity transparent government. Those two reasons Agency litigation web pages, by contrast, from another agency] may remove the distinguish agency litigation materials from can be a convenient way for the public to [adjudicator title] or [agency official or body/ litigation filings by private parties. examine agency litigation materials. For other entity] may discipline the [adjudicator However valuable public access to agency purposes of this Recommendation, an agency title] by [kinds of discipline] when litigation materials might be, federal law does litigation web page is a web page on an warranted. little to mandate it. When it comes to agency’s website that systematically catalogs The agency has adopted rules of recusal agencies’ own litigation filings, only the and links to agency litigation materials that [link] that allow a participant to request that Freedom of Information Act (FOIA) requires may aid the public in understanding the the [adjudicator title] in charge of his or her disclosure, and then only when members of agency’s regulatory or enforcement activities. case be disqualified if the participant the public specify the materials in which When agencies maintain up-to-date, search- believes the [adjudicator title] cannot fairly they are interested (and no FOIA exception friendly agency litigation web pages, the and impartially decide the case. applies).2 In the same vein, the E- public can visit them and quickly find If you are dissatisfied with an [adjudicator Government Act of 2002 requires federal important filings in court cases concerning title] decision, you can request courts to make their written opinions, matters of interest. Agency litigation web reconsideration from the [adjudicator title] or including opinions in cases involving federal pages thus make it easier for the public to 3 appeal that decision to [agency office/ agencies, available on websites. But that learn about the law and to hold government official]. Visit [link] for information on accountable for agencies’ actions. appealing an [adjudicator title] decision. 1 The term ‘‘component units’’ encompasses an Several federal agencies already maintain [Agency office/official] may also review your agency’s sub-units, which are often identified under agency litigation web pages.4 A survey of case on [its/his or her] own initiative if there terms like ‘‘agency,’’ ‘‘bureau,’’ ‘‘administration,’’ websites for twenty-five federal agencies ‘‘office,’’ ‘‘division,’’ or ‘‘service.’’ For example, the is an issue with the [adjudicator title]’s revealed a range of practices regarding decision. United States Fish and Wildlife Service is a component unit of the Department of the Interior, For Further Information: and the Office of Water is a component unit of the 4 • See Mark Thomson, Report on Agency Litigation Hiring process: [link] United States Environmental Protection Agency. web pages 14–16 (Nov. 24, 2020) (report to the • Pay rates: [link] 2 See 5 U.S.C. 552(a)(3). Admin. Conf. of the U.S.), https://www.acus.gov/ • Bonuses and performance incentives: [link] 3 See 44 U.S.C. 3502(a). report/report-agency-litigation-web pages.

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agency litigation web pages.5 The survey documents from all of its cases.7 And an c. The internal benefits of maintaining a suggests that most federal agencies do not agency that litigates many different types of web page providing access to certain types of maintain active agency litigation web pages. cases, some of obviously greater interest to agency litigation materials; Among those that do, the quality of the the public than others, might appropriately d. The costs of creating and maintaining a agency litigation web pages varies restrict the contents of its agency litigation web page providing access to the types of appreciably. Some contain vast troves of web page to agency litigation materials from agency litigation materials the agency sees fit agency litigation materials; others contain the types of cases that are of greater public to include; much more limited collections. Some are interest, particularly when the agency e. The nature of the agency’s litigation updated regularly; others are updated only determines that the resources required to portfolio, including the quantity of litigation sporadically. Some are easy to locate and post more agency litigation materials can be materials the agency generates each year; search; others are not. In short, there appears better applied elsewhere. f. The degree to which the agency’s to be no standard practice for publishing and Since the decision to create and maintain existing technological capacity can maintaining agency litigation web pages, save an agency litigation web page involves accommodate the creation and maintenance that all the surveyed agency litigation web balancing factors that will differ from agency of a web page providing access to certain pages contained only the publicly filed to agency, this Recommendation should not types of agency litigation materials; versions of agency litigation materials, with be read to suggest that agency litigation web g. The availability and cost of other all confidential material—such as trade pages be created and maintained by all technological services that may more reliably secrets and personally identifiable agencies, especially those that litigate and effectively give access to agency information—redacted. thousands of cases each year. Nor should this litigation material because of its scale or An inspection of agencies’ litigation web Recommendation be read as dictating the volume and the wide variety of issues and pages suggests four general features that precise contents or structure of agency matters involved; and make an agency litigation web page useful. litigation web pages. While encouraging the h. The risk of disclosure or increased First, an agency’s litigation web page must be creation and maintenance of agency litigation dissemination of confidential or sensitive easy to find. Second, it must contain a web pages, the Administrative Conference information of private litigants. representative and up-to-date collection of recognizes that an agency’s particular 4. In determining which agency litigation agency litigation materials. Third, those circumstances might ultimately militate materials to include on their websites, materials must be easy to search and sort. against creating an agency litigation web page agencies should ensure that they have And fourth, the agency’s litigation web page or might support only the creation of a implemented appropriate safeguards to must give visitors the information they need comparatively limited version. protect relevant privacy or business interests to understand the materials on the web page, At bottom, this Recommendation simply implicated by the disclosure of agency including information about materials the offers best practices and factors for agencies litigation materials. Each agency should agency omitted from the web page and the to consider in making their agency litigation implement a protocol to ensure that, before criteria the agency employed to determine materials available on their websites, should a document is posted to the agency’s which materials to include on the web page. the agencies choose to do so. The litigation web page, the document has been Agency litigation web pages can promote Recommendation leaves the weighing and reviewed and determined not to contain transparency and accountability. The balancing of those factors to the sound confidential information, such as trade Administrative Conference recognizes, discretion of individual agencies. secrets and personal identifying information. however, that creating and maintaining a Recommendation 5. Agencies should disclose materials in a useful agency litigation web page takes time, way that gives a full and accurate picture of money, and effort. An agency’s decision to Providing Access to Agency Litigation their litigating positions. To provide proper launch an agency litigation web page will Materials context, agencies should: necessarily be informed by considerations 1. Agencies should consider providing a. Use objective, clear, and publicly posted such as the agency’s mission, litigation access on their websites to publicly filed criteria to determine which agency litigation portfolio, existing technological capacity, pleadings, briefs, and settlements, as well as materials the agencies will publish on their budget, and the anticipated benefits—to the court decisions bearing on agencies’ websites; agency and the public—of creating an agency regulatory or enforcement activities b. Regularly review their websites to litigation web page.6 Further, an agency’s (collectively ‘‘agency litigation materials’’). ensure the agency litigation materials posted decisions about what content to include on 2. Should an agency choose to post such there (especially court opinions) are an agency litigation web page should be material, an agency with a large volume of complete and up-to-date, and consider tailored to the agency’s particular court litigation could decide not to post including notations regarding when material circumstances. An agency that litigates documents from every case. The agency on the web page was last updated; thousands of cases each year, for example, might, for instance, post examples of filings c. Provide appropriate context for agency could choose to feature only a representative from routine litigation and all or a portion of litigation materials, at least when failure to sample of agency litigation materials on its the filings from cases raising important or do so might confuse or mislead the public; agency litigation web page. unusual questions. d. Explain the types of litigation in which Similarly, an agency that litigates many 3. In determining whether to provide the agency is involved and other ways to repetitive, fact-based cases could reasonably access to agency litigation materials on their search for any additional agency litigation choose to post documents from just a few websites, and in determining which types of materials not included on the agency’s representative cases instead of posting agency litigation materials to include on their litigation web page, as well as opposing websites, among the factors agencies should counsel’s litigation filings; 5 See id. at 12–19 (identifying variations in agency consider are the following: e. When resources permit, consider posting practices). The survey conducted for this a. The public’s interest in having ready opposing parties’ litigation filings when they Recommendation covered all kinds of agencies—big access to certain categories of the agency’s are significant or important to understanding and small, independent and not, regulatory and litigation materials; an issue; benefit-oriented, and so forth—with the aim of b. The extent to which providing access to covering a broad and at least somewhat f. Neither present litigation materials as a representative cross-section of federal agencies. In agency litigation materials on the agency’s means of setting policy, nor use those particular, the survey focused on agencies that are website will advance the agency’s mission; materials to circumvent rulemaking frequently in federal court or that are parties to a processes; significant number of high-profile cases. 7 Cf. Admin. Conf. of the U.S., Recommendation g. Ensure that descriptions of agency 6 Most federal agencies do not have independent 2017–1, Adjudication Materials on Agency litigation materials, if any, fairly reflect the litigation authority but are represented in court by websites, 82 FR 31,039, 31,040 (July 5, 2017) litigation; and the Department of Justice (DOJ). In most cases, these (‘‘Agencies that adjudicate large volumes of cases h. Recognize that some types of agency agencies designate a DOJ liaison, who is then added that do not vary considerably in terms of their as a recipient for all court filing notices, resulting factual contexts or the legal analyses employed in litigation materials may be of greater in automatic access to all filings via PACER. This their dispositions should consider disclosing on significance than others. automatic access should enable implementation of their websites a representative sampling of actual 6. Agencies that choose to post significant this Recommendation by client agencies. cases and associated adjudication materials.’’). quantities of agency litigation materials on

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their websites should consider grouping ACTION: Notice. only one Ranger District will appear in together links to those materials on a single, the newspaper of record elected by the dedicated web page (an ‘‘agency litigation SUMMARY: This notice lists all National Forest, National Grassland, web page’’). If an agency is organized so that newspapers that will be used by the National Recreation Area, or Ranger its component units have their own litigation Ranger Districts, Grasslands, Forests and District as listed below. portfolios, some or all of the component units the Regional Office of the Southern may wish to have their own agency litigation Region to publish notices required National Forests in Alabama, Alabama web pages, or the agency may wish to maintain an agency litigation web page under 36 CFR parts 218 and 219. The Forest Supervisor Decisions intended effect of this action is to compiling litigation materials from or Affecting National Forest System relating to the agency’s component units. inform members of the public which newspapers will be used by the Forest lands in more than one Ranger District Making It Easy To Locate Agency Litigation Service to publish legal notices of the 6 in the National Forests in Web Pages regarding proposed actions, notices of Alabama:—‘‘Montgomery Advertiser’’, 7. Agencies that post agency litigation decisions and notices indicating published daily in Montgomery, materials on their websites should make sure opportunities to file objections. Alabama. Affecting National Forest that website users can easily locate those System lands in only one Ranger DATES: Use of these newspapers for materials. Agencies can accomplish this goal District will appear in the newspaper of by: purposes of publishing legal notice of record elected by the Ranger District as a. Displaying links to agency litigation web decisions and notices of the opportunity listed below. pages in readily visible locations on the to object under 36 CFR 218 and 36 CFR homepage for the agency’s website; and 219 shall begin the first day after the District Ranger Decisions b. Maintaining a search engine and a site date of this publication. map or index, or both, on the agency’s Bankhead Ranger District:— homepage. ADDRESSES: Robert Bergstrom, ‘‘Northwest Alabamian’’, published bi- 8. When an agency collects its component Administrative Review Coordinator, weekly (Wednesdays & Saturdays) in units’ litigation materials on a single agency Southern Region, Planning, 1720 Haleyville, Alabama. litigation web page, those component units’ Peachtree Road NW, Atlanta, Georgia Conecuh Ranger District:—‘‘The websites should clearly note that fact and 30309. Andalusia Star News’’, published bi- include links to the agency’s litigation web weekly (Wednesday and Saturday) in page. When an agency’s component units FOR FURTHER INFORMATION CONTACT: maintain their own litigation web pages, the Robert Bergstrom, Administrative Andalusia, Alabama. agency’s website should clearly note that fact Review Coordinator by telephone at Oakmulgee Ranger District:—‘‘The and include links to the component units’ (404) 606–6151 or by email at Tuscaloosa News’’, published daily in litigation web pages. [email protected]. Tuscaloosa, Alabama. SUPPLEMENTARY INFORMATION: Shoal Creek Ranger District:—‘‘The Making It Easy To Find Relevant Materials Anniston Star’’ published daily in on Agency Litigation Web Pages Responsible Officials in the Southern Region will give notice of the Anniston, Alabama. 9. Agencies and their component units Talladega Division:—‘‘The Anniston should have substantial flexibility in opportunity to object to a proposed project under 36 CFR part 218, or Star’’, published daily in Anniston, organizing materials. Agencies should Alabama. consider grouping together materials from the developing, amending or revising land Talladega Ranger District:—‘‘The same and related cases on their agency management plans under 36 CFR 219 in Daily Home’’, published daily in litigation web pages. Agencies might, for the following newspapers which are example, consider providing a separate Talladega, Alabama. listed by Forest Service administrative Tuskegee Ranger District:—‘‘Tuskegee docket page for each case, with a link to the unit. The timeframe for filing a docket page on their agency litigation web News’’, published weekly (Thursday) in pages. Agencies should also consider linking comment, appeal or an objection shall Tuskegee, Alabama. to the grouped-together materials when be based on the date of publication of issuing press releases concerning a particular the notice of the proposed action in the Chattahoochee-Oconee National Forest, litigation. newspaper of record for projects subject Georgia 10. Agencies should consider offering to 36 CFR 218 or 36 CFR 219. Where Forest Supervisor Decisions general and advanced search and filtering more than one newspaper is listed for options within their agency litigation web any unit, the first newspaper listed is ‘‘The Times’’, published daily in pages. The search and filtering options could, the newspaper of record that will be Gainesville, Georgia. for instance, allow users to sort, narrow, or filter searches according to criteria such as utilized for publishing the legal notice District Ranger Decisions of decisions and calculating timeframes. action or case type, date, topic, case number, Blue Ridge Ranger District:—‘‘The Secondary newspapers listed for a party name, a relevant statute or regulation, News Observer’’, (newspaper of record) particular unit are those newspapers the or specific words and phrases, along with published weekly (Wednesdays) in Blue any other criteria the agency decides are Deciding Officer/Responsible Official Ridge, Georgia. especially useful given its litigation expects to use for purposes of providing activities. ‘‘North Georgia News’’, (newspaper of additional notice. The following record) published weekly (Wednesdays) [FR Doc. 2021–01273 Filed 1–21–21; 8:45 am] newspapers will be used to provide in Blairsville, Georgia. BILLING CODE 6110–01–P notice: Conasauga Ranger District:—‘‘Daily Southern Region Citizen’’, published daily in Dalton, Georgia. DEPARTMENT OF AGRICULTURE Regional Forester Decisions Chattooga River Ranger District:— Affecting National Forest System ‘‘The Northeast Georgian’’, (newspaper Forest Service lands in more than one administrative of record) published bi-weekly Media Outlets for Publication of Legal unit of the 15 in the Southern Region:— (Wednesdays & Fridays) in Cornelia, and Action Notices in the Southern ‘‘Atlanta Journal—Constitution’’, Georgia. Region published daily in Atlanta, Georgia. ‘‘Clayton Tribune’’, (newspaper of Affecting National Forest System record) published weekly (Thursdays) AGENCY: Forest Service, USDA. lands in only one administrative unit or in Clayton, Georgia.

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Oconee Ranger District:—‘‘Eatonton District Ranger Decisions Eastern Divide Ranger District:— Messenger’’, published weekly Apalachicola Ranger District:— ‘‘Roanoke Times’’, published daily in (Thursdays) in Eatonton, Georgia. ‘‘Calhoun-Liberty Journal’’, published Roanoke, Virginia. Warm Springs Ranger District:—‘‘The Cherokee National Forest, Tennessee weekly (Wednesdays) in Bristol, Florida. Recorder’’, published weekly Forest Supervisor Decisions Lake George Ranger District:—‘‘The (Thursday) in Monterey, Virginia. ‘‘Cleveland Daily Banner’’, published Ocala Star Banner’’, published daily in Kisatchie National Forest, Louisiana Sunday, Wedneday, and Friday in Ocala, Florida. Cleveland, Tennessee. Osceola Ranger District:—‘‘The Lake Forest Supervisor Decisions City Reporter’’, published daily (except District Ranger Decisions ‘‘The Town Talk’’, published tri- Sunday) in Lake City, Florida. weekly (Sundays, Wednesdays, and Unaka Ranger District:—‘‘Greeneville Seminole Ranger District:—‘‘The Fridays) in Alexandria, Louisiana. Sun’’, published daily (except Sunday) Daily Commercial’’, published daily in in Greeneville, Tennessee. Leesburg, Florida. District Ranger Decisions Ocoee-Hiwassee Ranger District:— Wakulla Ranger District:—‘‘The Calcasieu Ranger District:—‘‘The ‘‘Polk County News’’, published Tallahassee Democrat’’, published daily Town Talk’’, (newspaper of record) Thursday only, Benton, Tennessee. in Tallahassee, Florida. published tri-weekly (Sundays, Tellico Ranger District:—‘‘Monroe Francis Marion & Sumter National Wednesdays, and Fridays) in County Advocate & Democrat’’, Alexandria, Louisiana. published tri-weekly (Wednesdays and Forests, South Carolina ‘‘The Leesville Daily Leader’’, Sundays) in Sweetwater, Tennessee. Forest Supervisor Decisions (secondary) published tri-weekly Watauga Ranger District:—‘‘Johnson (Sundays, Wednesdays, and Fridays) in City Press’’, published daily in Johnson ‘‘The State’’, published Sunday, Leesville, Louisiana. City, Tennessee. Monday, Tuesday, Wednesday, Thursday, and Friday in Columbia, Caney Ranger District:—‘‘Minden Daniel Boone National Forest, South Carolina. Press Herald’’, (newspaper of record) Kentucky published daily in Minden, Louisiana. District Ranger Decisions Forest Supervisor Decisions ‘‘Homer Guardian Journal’’, Andrew Pickens Ranger District:— (secondary) published weekly ‘‘Lexington Herald-Leader’’, ‘‘The Daily Journal’’, published daily (Wednesdays) in Homer, Louisiana. published daily in Lexington, Kentucky. (Tuesday through Saturday) in Seneca, Catahoula Ranger District:—‘‘The District Ranger Decisions South Carolina. Town Talk’’, published tri-weekly Enoree Ranger District:—‘‘Newberry (Sundays, Wednesdays, and Fridays) in Cumberland Ranger District:—‘‘The Observer’’, published Wednesday in Alexandria, Louisiana. Daily Independent’’, published Monday, Newberry, South Carolina. Kisatchie Ranger District:— Wednesday, Thursday, Friday, and Long Cane Ranger District:—‘‘Index- ‘‘Natchitoches Times’’, published tri- Saturday in Ashland, Kentucky. Journal’’, published daily in London Ranger District:—‘‘The weekly (Wednesdays, Satursdays, and Greenwood, South Carolina. Sundays) in Natchitoches, Louisiana. Sentinel- Echo’’, published weekly on Francis Marion Ranger District:— Wednesday in London, Kentucky. Winn Ranger District:—‘‘Winn Parish ‘‘Post and Courier’’, published daily in Enterprise’’, published weekly Redbird Ranger District:— Charleston, South Carolina. ‘‘Manchester Enterprise’’, published (Wednesdays) in Winnfield, Louisiana. weekly on Wednesday in Manchester, George Washington and Jefferson Land Between the Lakes National Kentucky. National Forests, Virginia and West Recreation Area, Kentucky and Stearns Ranger District:—‘‘McCreary Virginia Tennessee County Voice’’, published weekly on Forest Supervisor Decisions Thursdays in Whitley City, Kentucky. Area Supervisor Decisions ‘‘Roanoke Times’’, published daily in El Yunque National Forest, Puerto Rico ‘‘The Paducah Sun’’, published daily Roanoke, Virginia. in Paducah, Kentucky. Forest Supervisor Decisions District Ranger Decisions National Forests in Mississippi, ‘‘El Nuevo Dia’’, published daily in Clinch Ranger District:—‘‘Coalfield Mississippi Spanish in San Juan, Puerto Rico. Progress’’, published bi-weekly ‘‘San Juan Daily Star’’, published Forest Supervisor Decisions (Tuesdays and Fridays) in Norton, daily in English in San Juan, Puerto Virginia. ‘‘Clarion-Ledger’’, published daily in Rico. North River Ranger District:—‘‘Daily Jackson, Mississippi. National Forests in Florida, Florida News Record’’, published daily (except District Ranger Decisions Sunday) in Harrisonburg, Virginia. Forest Supervisor Decisions Glenwood-Pedlar Ranger District:— Bienville Ranger District:—‘‘Clarion- Affecting National Forest System ‘‘Roanoke Times’’, published daily in Ledger’’, published daily in Jackson, lands in more than one Ranger District Roanoke, Virginia. Mississippi. in the National Forests in Florida or James River Ranger District:— Chickasawhay Ranger District:— Florida National Scenic Trail land ‘‘Virginian Review’’, published daily ‘‘Clarion-Ledger’’, published daily in outside Ranger Districts:—‘‘The (except Sunday) in Covington, Virginia. Jackson, Mississippi. Tallahassee Democrat’’, published daily Lee Ranger District: —‘‘Shenandoah Delta Ranger District:—‘‘Clarion- in Tallahassee, FL. Affecting National Valley Herald’’, published weekly Ledger’’, published daily in Jackson, Forest System lands in only one Ranger (Wednesday) in Woodstock, Virginia. Mississippi. District will appear in the newspaper of Mount Rogers National Recreation De Soto Ranger District:—‘‘Clarion record elected by the Ranger District as Area:—‘‘Bristol Herald Courier’’, Ledger’’, published daily in Jackson, listed below. published daily in Bristol, Virginia. Mississippi.

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Holly Springs Ranger District:— Oklahoma Ranger District (Choctaw; Sam Houston National Forest:—‘‘The ‘‘Clarion-Ledger’’, published daily in Kiamichi; and Tiak):—‘‘McCurtain Daily Courier’’, published daily in Conroe, Jackson, Mississippi. Gazette’’, published Tuesday, Thursday, Texas. Homochitto Ranger District:— and Saturdays in Idabel, Oklahoma. ‘‘Clarion- Ledger’’, published daily in Christine Dawe, Poteau-Cold Springs Ranger Acting Associate Deputy Chief, National Jackson, Mississippi. District:—‘‘Arkansas Democrat- Tombigbee Ranger District:— Forest System. Gazette’’, published Sunday in Little ‘‘Clarion- Ledger’’, published daily in [FR Doc. 2021–01309 Filed 1–21–21; 8:45 am] Rock, Arkansas. Jackson, Mississippi. BILLING CODE 3411–15–P National Forests in North Carolina, Ozark-St. Francis National Forests, Arkansas North Carolina COMMISSION ON CIVIL RIGHTS Forest Supervisor Decisions Forest Supervisor Decisions Notice of Public Meetings of the ‘‘The Asheville Citizen-Times’’, ‘‘The Courier’’, published daily Virginia Advisory Committee published daily, Wednesday thru (Tuesday through Sunday) in Sunday, (except Monday and Tuesday), Russellville, Arkansas. AGENCY: U.S. Commission on Civil in Asheville, North Carolina. Rights. District Ranger Decisions District Ranger Decisions ACTION: Announcement of meeting. Bayou Ranger District:—‘‘The Appalachian Ranger District:—‘‘The SUMMARY: Notice is hereby given, Courier’’, published daily (Tuesday Asheville Citizen-Times’’, published pursuant to the provisions of the rules through Sunday) in Russellville, Wednesday thru Sunday, in Asheville, and regulations of the U.S. Commission Arkansas. North Carolina. on Civil Rights (Commission) and the Cheoah Ranger District:—‘‘Graham Boston Mountain Ranger District:— Federal Advisory Committee Act that Star’’, published weekly (Thursdays) in ‘‘Southwest Times Record’’, published the Virginia Advisory Committee Robbinsville, North Carolina. daily in Fort Smith, Arkansas. (Committee) will hold a virtual (online) Croatan Ranger District:—‘‘The Sun Buffalo Ranger District:—‘‘The meeting Thursday, February 18, 2021 at Journal’’, published daily in New Bern, Courier’’, published daily (Tuesday 3:00 p.m. Eastern Time. The purpose of North Carolina. through Sunday) in Russellville, the meeting is to discuss the proposal Grandfather Ranger District:— Arkansas. on the Committee’s forthcoming ‘‘McDowell News’’, published daily in policing project. Magazine Ranger District:— Marion, North Carolina. DATES: The meeting will be held on Nantahala Ranger District:—‘‘The ‘‘Southwest Times Record’’, published daily in Fort Smith, Arkansas. Thursday, February 18, 2021, at 3:00 Franklin Press’’, published weekly on p.m. Eastern Time. Wednesday in Franklin, North Carolina. Pleasant Hill Ranger District:— FOR FURTHER INFORMATION CONTACT: Pisgah Ranger District:—‘‘The ‘‘Johnson County Graphic’’, published Asheville Citizen-Times’’, published Melissa Wojnaroski, DFO, at weekly (Wednesday) in Clarksville, [email protected] or (202) 618– daily (Wednesday thru Sunday, except Arkansas. Monday and Tuesday) in Asheville, 4158. St. Francis National Forest:—‘‘The North Carolina. SUPPLEMENTARY INFORMATION: Tusquitee Ranger District:— Daily World’’, published bi-weekly Public Access ‘‘Cherokee Scout’’, published weekly (Tuesdays and Fridays) in Helena, (Wednesdays) in Murphy, North Arkansas. • Online: (audio/visual) Register online: Carolina. Sylamore Ranger District:—‘‘Stone https://bit.ly/3nK85I2 Uwharrie Ranger District:— County Leader’’, published weekly • Phone: (audio only) 800–360–9505 ‘‘Montgomery Herald’’, published (Wednesday) in Mountain View, USA Toll Free; Access code: 199 832 weekly (Wednesdays) in Troy, North Arkansas. 9662 Carolina. Members of the public may listen to this National Forests and Grasslands in discussion through the above call-in Ouachita National Forest, Arkansas Texas, Texas number or join online via the above web and Oklahoma Forest Supervisor Decisions registration link. An open comment Forest Supervisor Decisions period will be provided to allow ‘‘The Lufkin Daily News’’ published members of the public to make a ‘‘Arkansas Democrat-Gazette’’, daily in Lufkin, Texas. published Sunday in Little Rock, statement as time allows. The Arkansas. District Ranger Decisions conference call operator will ask callers to identify themselves, the organization District Ranger Decisions Angelina National Forest:—‘‘The they are affiliated with (if any), and an Caddo-Womble Ranger District:— Lufkin Daily News’’, published daily in email address prior to placing callers ‘‘Arkansas Democrat-Gazette’’, Lufkin, Texas. into the conference room. Callers can published Sunday in Little Rock, Caddo & LBJ National Grasslands:— expect to incur regular charges for calls Arkansas. ‘‘Denton Record-Chronicle’’, published they initiate over wireless lines, Jessieville-Winona-Fourche Ranger daily in Denton, Texas. according to their wireless plan. The District:—‘‘Arkansas Democrat- Commission will not refund any Gazette’’, published Sunday in Little Davy Crockett National Forest:—‘‘The incurred charges. Callers will incur no Rock, Arkansas. Lufkin Daily News’’, published daily in charge for calls they initiate over land- Mena-Oden Ranger District:— Lufkin, Texas. line connections to the toll-free ‘‘Arkansas Democrat-Gazette’’, Sabine National Forest:—‘‘The Lufkin telephone number. Individuals who are published Sunday in Little Rock, Daily News’’, published daily in Lufkin, deaf, deafblind or hard of hearing may Arkansas. Texas. also follow the proceedings by first

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calling the Federal Relay Service at 1– March 31st PUBLIC WEBEX III. Discussion 800–877–8339 and providing the REGISTRATION LINK: https:// IV. Public Comment Service with the conference call number tinyurl.com/yy2ohp3s V. Adjournment and conference ID number. April 21st PUBLIC WEEX Dated: January 14, 2021. Members of the public are entitled to REGISTRATION LINK: https:// David Mussatt, submit written comments; the tinyurl.com/yx9lb79b Supervisory Chief, Regional Programs Unit. comments must be received in the FOR FURTHER INFORMATION CONTACT: [FR Doc. 2021–01286 Filed 1–21–21; 8:45 am] regional office within 30 days following Brooke Peery, Designated Federal BILLING CODE P the meeting. Written comments may be Officer (DFO), at [email protected] or by emailed to Melissa Wojnaroski at phone at (202) 701–1376. [email protected]. SUPPLEMENTARY INFORMATION: Members COMMISSION ON CIVIL RIGHTS Records generated from this meeting of the public may listen to the may be inspected and reproduced at the discussion. This meeting is available to Commission on Civil Rights; Notice of Regional Programs Unit Office, as they the public through the public Webex Public Meetings of the Illinois Advisory become available, both before and after registration link listed above. An open Committee the meeting. Records of the meeting will comment period will be provided to AGENCY: U.S. Commission on Civil be available via www.facadatabase.gov allow members of the public to make a under the Commission on Civil Rights, Rights. statement as time allows. The ACTION: Announcement of meeting. Virginia Advisory Committee link. conference call operator will ask callers Persons interested in the work of this to identify themselves, the organization SUMMARY: Notice is hereby given, Committee are directed to the they are affiliated with (if any), and an pursuant to the provisions of the rules Commission’s website, http:// email address prior to placing callers and regulations of the U.S. Commission www.usccr.gov, or may contact the into the conference room. Callers can on Civil Rights (Commission) and the Regional Programs Unit at the above expect to incur regular charges for calls Federal Advisory Committee Act that email or street address. they initiate over wireless lines, the Illinois Advisory Committee Agenda according to their wireless plan. The (Committee) will hold a meeting via the Commission will not refund any online platform WebEx on Tuesday, I. Welcome & Roll Call incurred charges. Callers will incur no February 9, 2021 at 12:00 p.m. Central II. Civil Rights Discussion: Policing in charge for calls they initiate over land- Time. The purpose of the meeting is for Virginia line connections to the toll-free the Committee to start preparing for III. Committee Q & A telephone number. Persons with hearing their upcoming WebEx briefing on IV. Public Comment impairments may also follow the Education and concerns in the state. VI. Adjournment proceedings by first calling the Federal DATES: The meeting will be held on: Dated: January 14, 2021. Relay Service at 1–800–877–8339 and • Tuesday, February 9, 2021, at 12:00 David Mussatt, providing the Service with the p.m. Central Time Web link: https:// Supervisory Chief, Regional Programs Unit. conference call number and conference civilrights.webex.com/civilrights/j.php? [FR Doc. 2021–01291 Filed 1–21–21; 8:45 am] ID number. MTID=m764917f4d572a026d680fba5a BILLING CODE P Members of the public are also 0a2eb26, or Join by phone: 800–360– entitled to submit written comments; 9505 USA Toll Free, Access code: 199 the comments must be received in the 496 5009. COMMISSION ON CIVIL RIGHTS regional office within 30 days following FOR FURTHER INFORMATION CONTACT: the meeting. Written comments may be David Barreras, Designated Federal Notice of Public Meeting of the mailed to the Western Regional Office, Officer, at [email protected] or (202) Washington Advisory Committee U.S. Commission on Civil Rights, 300 N 499–4066. SUPPLEMENTARY INFORMATION: AGENCY: U.S. Commission on Civil Los Angeles St., Suite 2010, Los Members Rights. Angeles, CA 90012, or email Brooke of the public may listen to this Peery at [email protected]. discussion through the above call-in ACTION: Announcement of meetings. Records generated from this meeting number. An open comment period will SUMMARY: Notice is hereby given, may be inspected and reproduced at the be provided to allow members of the pursuant to the provisions of the rules Regional Programs Unit Office, as they public to make a statement as time and regulations of the U.S. Commission become available, both before and after allows. Callers can expect to incur on Civil Rights (Commission) and the the meeting. Records of the meeting will regular charges for calls they initiate Federal Advisory Committee Act that be available at: https:// over wireless lines, according to their the Washington Advisory Committee www.facadatabase.gov/FACA/FACA wireless plan. The Commission will not (Committee) will hold a series of PublicViewCommitteeDetails?id= refund any incurred charges. Individual meetings via Webex on Wednesday, a10t0000001gzkZAAQ. who is deaf, deafblind and hard of March 31, and Wednesday, April 21, Please click on the ‘‘Meeting Details’’ hearing may also follow the proceedings 2021 from 2:00 p.m.–3:30 p.m. Pacific and ‘‘Documents’’ links. Persons by first calling the Federal Relay Service Time. The purpose of the meetings is for interested in the work of this Committee at 1–800–877–8339 and providing the the Committee to discuss testimony and are also directed to the Commission’s Service with the conference call number plan for upcoming panels. website, http://www.usccr.gov, or may and conference ID number. contact the Regional Programs Unit Members of the public are entitled to DATES: These meetings will be held on: office at the above email or street submit written comments; the • Wednesday, March 31, 2021 from 2:00 address. comments must be received in the p.m.–3:30 p.m. Pacific Time regional office within 30 days following • Wednesday, April 21, 2021 from 2:00 Agenda the meeting. Written comments may be p.m.–3:30 p.m. Pacific Time I. Welcome & Roll Call emailed to David Barreras at dbarreras@ ADDRESSES: II. Approval of Minutes usccr.gov.

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Records generated from this meeting ADDRESSES: The Department of Commerce, 1401 Constitution Avenue may be inspected and reproduced at the Commerce’s FY 2018 Service Contract NW, Washington, DC 20230; telephone: Regional Programs Unit Office, as they Inventory is included in the (202) 482–0698. become available, both before and after government-wide inventory available at: SUPPLEMENTARY INFORMATION: the meeting. Records of the meeting will https://www.acquisition.gov/service- be available via https:// contract-inventory, which can be Background www.facadatabase.gov/FACA/ filtered to display the FY 2018 Commerce published the Preliminary FACAPublicViewCommitteeDetails?id= inventory for each agency. In addition to Results of this administrative review in a10t0000001gzlZAAQ under the the link to access DOC’s FY 2018 service the Federal Register on August 5, 2020.1 Commission on Civil Rights, Illinois contract inventory, the FY 2017 We invited parties to comment on the Advisory Committee link. Persons Analysis Report and Plan for analyzing Preliminary Results. No interested party interested in the work of this Committee the FY 2018 data is on the Office of submitted comments or requested a are directed to the Commission’s Acquisition Management homepage at hearing in this administrative review. website, http://www.usccr.gov, or may the following link http:// On April 24, 2020, Commerce tolled all contact the Regional Programs Unit at www.osec.doc.gov/oam/. OFPP’s deadlines in administrative reviews by the above email or street address. guidance memo on service contract 50 days.2 On July 21, 2020, Commerce inventories is available at: http:// tolled all deadlines in administrative Agenda www.whitehouse.gov/sites/default/files/ reviews by an additional 60 days,3 I. Welcome & Roll Call omb/procurement/memo/service- thereby extending the deadline for these II. Chair’s comments contract-inventories-guidance- final results until January 19, 2021. III. Discussion: Education Project 11052010.pdf. Commerce conducted this review in IV. Next Steps FOR FURTHER INFORMATION CONTACT: accordance with section 751(a)(1)(A) of V. Public Comment the Tariff Act of 1930, as amended (the VI. Adjournment Questions regarding the service contract inventory should be directed to Virna Act). Dated: January 15, 2021. Winters, Director for Acquisitions Scope of the Order David Mussatt, Policy and Oversight Division at 202– The merchandise covered by the order Supervisory Chief, Regional Programs Unit. 482–4248 or [email protected]. [FR Doc. 2021–01388 Filed 1–21–21; 8:45 am] is aluminum extrusions from China. The Barry E. Berkowitz, complete description of the scope is BILLING CODE;P Senior Procurement Executive and Director, provided at Appendix I of this notice. Office of Acquisition Management. Changes Since the Preliminary Results [FR Doc. 2021–01308 Filed 1–21–21; 8:45 am] DEPARTMENT OF COMMERCE As no party submitted comments on BILLING CODE P the Preliminary Results, Commerce Office of the Secretary made no changes for these final results [Docket No.: 200723–0198] DEPARTMENT OF COMMERCE of review. Rescission of Review Public Availability of Department of International Trade Administration Commerce FY 2018 Service Contract In the Preliminary Results, we stated Inventory Data [C–570–968] our intention to rescind the review with respect to companies named in the AGENCY: Office of the Secretary, Aluminum Extrusions From the Initiation Notice for which all review Department of Commerce. People’s Republic of China: Final Results of Countervailing Duty requests were timely withdrawn in ACTION: Notice of Public Availability of accordance with 19 CFR 351.213(d)(1). Administrative Review and Rescission FY 2018 Service Contract Inventories These companies are listed in Appendix of Review, in Part; 2018 Data. II of this notice. For these companies, SUMMARY: In accordance with Section AGENCY: Enforcement and Compliance, Commerce is rescinding the 743 of Division C of the Consolidated International Trade Administration, administrative review and will assess Appropriations Act of 2010 (Pub. L. Department of Commerce. duties at rates equal to the rates of the 111–117), the Department of Commerce SUMMARY: The Department of Commerce cash deposits for estimated (DOC) is publishing this notice to advise (Commerce) has completed its countervailing duties required at the the public of the availability of the administrative review of the time of entry, or withdrawn from Fiscal Year (FY) 2018 Service Contract countervailing duty (CVD) order on warehouse, for consumption, during the Inventory data, a report that analyzes aluminum extrusions from the People’s POR, in accordance with 19 CFR 4 DOC’s FY 2017 Service Contract Republic of China (China) for the period 351.212(c)(1). Inventory and a plan for the analysis of of review (POR) January 1, 2018 through 1 FY 2018 Service Contract Inventory. December 31, 2018, and determines that See Aluminum Extrusions from the People’s countervailable subsidies are being Republic of China: Preliminary Results of the The service contract inventory Countervailing Duty Administrative Review, provides information on service contract provided to producers and exporters of Rescission of Review, in Part, and Intent to Rescind, actions over $150,000 made in FY 2018. aluminum extrusions. The final net in Part; 2018, 85 FR 47349 (August 5, 2020) The information is organized by countervailable subsidy rates are listed (Preliminary Results), and accompanying Preliminary Decision Memorandum. function to show how contracted below in the section titled ‘‘Final Results of Administrative Review.’’ 2 See Memorandum, ‘‘Tolling of Deadlines for resources are distributed throughout the Antidumping and Countervailing Duty agency. The inventory has been DATES: Applicable January 22, 2021. Administrative Reviews in Response to Operational developed in accordance with guidance FOR FURTHER INFORMATION CONTACT: Adjustments Due to COVID–19,’’ dated April 24, on service contract inventories issued Davina Friedmann, AD/CVD 2020. 3 See Memorandum, ‘‘Tolling of Deadlines for on November 5, 2010, by the Office of Operations, Office VI, Enforcement and Antidumping and Countervailing Duty Management and Budget’s Office of Compliance, International Trade Administrative Reviews,’’ dated July 21, 2020. Federal Procurement Policy (OFPP). Administration, U.S. Department of 4 See Preliminary Results, 85 FR 47349, 47350.

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Final Results of Administrative Review disclosed under APO in accordance extrusions include, but are not limited to, with 19 CFR 351.305(a)(3), which extrusions that are mill finished (i.e., without In accordance with 19 CFR any coating or further finishing), brushed, 351.221(b)(5), we determine the continues to govern business proprietary information in this segment buffed, polished, anodized (including following final net subsidy rates for the brightdip anodized), liquid painted, or 2018 administrative review: 5 of the proceeding. Timely written powder coated. Aluminum extrusions may notification of return or destruction of also be fabricated, i.e., prepared for assembly. Final APO materials or conversion to judicial Such operations would include, but are not Company ad valorem protective order is hereby requested. limited to, extrusions that are cut-to-length, rate Failure to comply with the regulations machined, drilled, punched, notched, bent, (percent) and the terms of an APO is a stretched, knurled, swedged, mitered, sanctionable violation. chamfered, threaded, and spun. The subject Activa International Inc ...... 242.15 merchandise includes aluminum extrusions Changzou Tenglong Auto Parts Notification to Interested Parties that are finished (coated, painted, etc.), Co. Ltd ...... 16.08 We are issuing and publishing these fabricated, or any combination thereof. CRRC Changzhou Auto Parts Subject aluminum extrusions may be Co. Ltd ...... 242.15 results in accordance with sections described at the time of importation as parts Dongguan Aoda Aluminum Co. 751(a)(1) and 777(i)(1) of the Act. for final finished products that are assembled Ltd ...... 16.08 after importation, including, but not limited Guangdong Xingfa Aluminum Dated: January 13, 2021. Jeffrey I. Kessler, to, window frames, door frames, solar panels, Co., Ltd ...... 242.15 curtain walls, or furniture. Such parts that Precision Metal Works Ltd ...... 242.15 Assistant Secretary for Enforcement and otherwise meet the definition of aluminum Compliance. extrusions are included in the scope. The Assessment Rates Appendix I scope includes the aluminum extrusion In accordance with 19 CFR components that are attached (e.g., by Scope of the Order 351.212(b)(2), Commerce intends to welding or fasteners) to form subassemblies, { } i.e., partially assembled merchandise unless issue appropriate assessment The merchandise covered by the order s is aluminum extrusions which are shapes imported as part of the finished goods ‘kit’ instructions to U.S. Customs and Border and forms, produced by an extrusion process, defined further below. The scope does not Protection (CBP) 15 days after made from aluminum alloys having metallic include the non-aluminum extrusion publication of these final results of elements corresponding to the alloy series components of subassemblies or subject kits. review, to liquidate shipments of subject designations published by The Aluminum Subject extrusions may be identified with merchandise produced and/or exported Association commencing with the numbers reference to their end use, such as fence by the companies listed above, entered, 1, 3, and 6 (or proprietary equivalents or posts, electrical conduits, door thresholds, or withdrawn from warehouse, for other certifying body equivalents). carpet trim, or heat sinks (that do not meet consumption on or after January 1, 2018 Specifically, the subject merchandise made the finished heat sink exclusionary language below). Such goods are subject merchandise through December 31, 2018, at the ad from aluminum alloy with an Aluminum Association series designation commencing if they otherwise meet the scope definition, valorem rates listed above. with the number 1 contains not less than 99 regardless of whether they are ready for use Cash Deposit Requirements percent aluminum by weight. The subject at the time of importation. merchandise made from aluminum alloy The following aluminum extrusion In accordance with section 751(a)(1) with an Aluminum Association series products are excluded: aluminum extrusions of the Act, Commerce will instruct CBP designation commencing with the number 3 made from aluminum alloy with an to collect cash deposits of estimated contains manganese as the major alloying Aluminum Association series designations countervailing duties in the amounts element, with manganese accounting for not commencing with the number 2 and shown for each of the respective more than 3.0 percent of total materials by containing in excess of 1.5 percent copper by companies listed above for shipments of weight. The subject merchandise is made weight; aluminum extrusions made from subject merchandise entered, or from an aluminum alloy with an Aluminum aluminum alloy with an Aluminum Association series designation commencing Association series designation commencing withdrawn from warehouse, for with the number 6 contains magnesium and with the number 5 and containing in excess consumption on or after the date of silicon as the major alloying elements, with of 1.0 percent magnesium by weight; and publication of these final results of magnesium accounting for at least 0.1 aluminum extrusions made from aluminum review. For all non-reviewed firms, we percent but not more than 2.0 percent of total alloy with an Aluminum Association series will instruct CBP to collect cash materials by weight, and silicon accounting designation commencing with the number 7 deposits of estimated countervailing for at least 0.1 percent but not more than 3.0 and containing in excess of 2.0 percent zinc duties at the most recent company- percent of total materials by weight. The by weight. specific or all-others rate applicable to subject aluminum extrusions are properly The scope also excludes finished the company, as appropriate. These cash identified by a four-digit alloy series without merchandise containing aluminum either a decimal point or leading letter. extrusions as parts that are fully and deposit requirements, when imposed, Illustrative examples from among the permanently assembled and completed at the shall remain in effect until further approximately 160 registered alloys that may time of entry, such as finished windows with notice. characterize the subject merchandise are as glass, doors with glass or vinyl, picture Administrative Protective Order follows: 1350, 3003, and 6060. frames with glass pane and backing material, Aluminum extrusions are produced and and solar panels. The scope also excludes This notice serves as a reminder to imported in a wide variety of shapes and finished goods containing aluminum parties subject to administrative forms, including, but not limited to, hollow extrusions that are entered unassembled in a protective order (APO) of their profiles, other solid profiles, pipes, tubes, ‘‘finished goods kit.’’ A finished goods kit is responsibility concerning the bars, and rods. understood to mean a packaged combination destruction of proprietary information Aluminum extrusions that are drawn of parts that contains, at the time of subsequent to extrusion (drawn aluminum) importation, all of the necessary parts to fully are also included in the scope. assemble a final finished good and requires 5 See Preliminary Results; see also Memorandum, Aluminum extrusions are produced and no further finishing or fabrication, such as ‘‘Administrative Review of Countervailing Duty Order on Aluminum Extrusions from the People’s imported with a variety of finishes (both cutting or punching, and is assembled ‘‘as is’’ Republic of China: AFA Calculation Memorandum coatings and surface treatments), and types of into a finished product. An imported product for the Preliminary Results of Review; 2018,’’ dated fabrication. The types of coatings and will not be considered a ‘‘finished goods kit’’ August 28, 2020. treatments applied to subject aluminum and therefore excluded from the scope of the

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order{s} merely by including fasteners such 8302.49.60.55, 8302.49.60.85, 8302.50.00.00, 26. Changzhou Changzhen Evaporator Co., as screws, bolts, etc. in the packaging with 8302.60.90.00, 8305.10.00.50, 8306.30.00.00, Ltd. an aluminum extrusion product. 8414.59.60.90, 8415.90.80.45, 8418.99.80.05, 27. Changzhou Tenglong Auto Accessories The scope also excludes aluminum alloy 8418.99.80.50, 8418.99.80.60, 8419.90.10.00, Manufacturing Co. Ltd. sheet or plates produced by other than the 8422.90.06.40, 8473.30.20.00, 8473.30.51.00, 28. Changzhou Tenglong Auto Parts Co. extrusion process, such as aluminum 8479.90.85.00, 8486.90.00.00, 8487.90.00.80, Ltd. products produced by a method of casting. 8503.00.95.20, 8508.70.00.00, 8515.90.20.00, 29. China Square Cast aluminum products are properly 8516.90.50.00, 8516.90.80.50, 8517.70.00.00, 30. China Square Industrial Co. identified by four digits with a decimal point 8529.90.73.00, 8529.90.97.60, 8536.90.80.85, 31. China Square Industrial Ltd. between the third and fourth digit. A letter 8538.10.00.00, 8543.90.88.80, 8708.29.50.60, 32. China Zhongwang Holdings, Ltd. may also precede the four digits. The 8708.80.65.90, 8803.30.00.60, 9013.90.50.00, 33. Chiping One Stop Industrial & Trade following Aluminum Association 9013.90.90.00, 9401.90.50.81, 9403.90.10.40, Co., Ltd. designations are representative of aluminum 9403.90.10.50, 9403.90.10.85, 9403.90.25.40, 34. Classic & Contemporary Inc. alloys for casting: 208.0, 295.0, 308.0, 355.0, 9403.90.25.80, 9403.90.40.05, 9403.90.40.10, 35. Clear Sky Inc. C355.0, 356.0, A356.0, A357.0, 360.0, 366.0, 9403.90.40.60, 9403.90.50.05, 9403.90.50.10, 36. Coclisa S.A. de C.V. 380.0, A380.0, 413.0, 443.0, 514.0, 518.1, and 9403.90.50.80, 9403.90.60.05, 9403.90.60.10, 37. Cosco (J.M.) Aluminum Co., Ltd. 712.0. The scope also excludes pure, 9403.90.60.80, 9403.90.70.05, 9403.90.70.10, 38. Cosco (J.M.) Aluminum Development unwrought aluminum in any form. 9403.90.70.80, 9403.90.80.10, 9403.90.80.15, Co. Ltd. The scope also excludes collapsible tubular 9403.90.80.20, 9403.90.80.41, 9403.90.80.51, 39. Dalian Huacheng Aquatic Products containers composed of metallic elements 9403.90.80.61, 9506.11.40.80, 9506.51.40.00, 40. Dalian Liwang Trade Co., Ltd. corresponding to alloy code 1080A as 9506.51.60.00, 9506.59.40.40, 9506.70.20.90, 41. Danfoss Micro Channel Heat Exchanger designated by the Aluminum Association 9506.91.00.10, 9506.91.00.20, 9506.91.00.30, (Jia Xing) Co., Ltd. where the tubular container (excluding the 9506.99.05.10, 9506.99.05.20, 9506.99.05.30, 42. Daya Hardware Co Ltd. nozzle) meets each of the following 9506.99.15.00, 9506.99.20.00, 9506.99.25.80, 43. Dongguan Dazhan Metal Co., Ltd. dimensional characteristics: (1) Length of 37 9506.99.28.00, 9506.99.55.00, 9506.99.60.80, 44. Dongguan Golden Tiger Hardware millimeters (‘‘mm’’) or 62 mm, (2) outer 9507.30.20.00, 9507.30.40.00, 9507.30.60.00, Industrial Co., Ltd. diameter of 11.0 mm or 12.7 mm, and (3) 9507.90.60.00, and 9603.90.80.50. 45. Dongguang Aoda Aluminum Co., Ltd. wall thickness not exceeding 0.13 mm. The subject merchandise entered as parts 46. Dragonluxe Limited Also excluded from the scope of these 47. Dynabright International Group (HK) { } of other aluminum products may be order s are finished heat sinks. Finished classifiable under the following additional Ltd. heat sinks are fabricated heat sinks made Chapter 76 subheadings: 7610.10, 7610.90, 48. Dynamic Technologies China from aluminum extrusions the design and 7615.19, 7615.20, and 7616.99, as well as 49. ETLA Technology (Wuxi) Co. Ltd. production of which are organized around under other HTSUS chapters. In addition, fin 50. Ever Extend Ent. Ltd. meeting certain specified thermal evaporator coils may be classifiable under 51. Fenghua Metal Product Factory performance requirements and which have HTSUS numbers: 8418.99.80.50 and 52. First Union Property Limited been fully, albeit not necessarily 8418.99.80.60. While HTSUS subheadings 53. FookShing Metal & Plastic Co. Ltd. individually, tested to comply with such are provided for convenience and customs 54. Foreign Trade Co. of Suzhou New & requirements. purposes, the written description of the High-Tech Industrial Development Zone Also excluded from the scope of the scope of these order{s} is dispositive. 55. Foshan City Nanhai Hongjia Aluminum order{s} is certain rectangular wire produced Alloy Co., Ltd. from continuously cast rolled aluminum wire Appendix II 56. Foshan Golden Source Aluminum rod, which is subsequently extruded to Products Co., Ltd. dimension to form rectangular wire. The List of Companies for Which We Are 57. Foshan Guangcheng Aluminium Co., product is made from aluminum alloy grade Rescinding This Administrative Review Ltd. 1070 or 1370, with no recycled metal content 1. Acro Import and Export Co. 58. Foshan Jinlan Aluminum Co. Ltd. allowed. The dimensions of the wire are 5 2. Activa Leisure Inc. 59. Foshan JinLan Aluminum Co., Ltd. mm (+/- 0.05 mm) in width and 1.0 mm (+/ 3. Agilent Technologies Co. Ltd (China) 60. Foshan JMA Aluminum Company - 0.02 mm) in thickness. Imports of 4. Allied Maker Limited Limited rectangular wire are provided for under 5. Alnan Aluminum Co., Ltd. 61. Foshan Nanhai Niu Yuan Hardware HTSUS category 7605.19.000. 6. Alnan Aluminum Ltd. Product Co., Ltd. Imports of the subject merchandise are 7. Aluminicaste Fundicion de Mexico 62. Foshan Shunde Aoneng Electrical provided for under the following categories 8. AMC Limited Appliances Co., Ltd. of the Harmonized Tariff Schedule of the 9. AMC Ltd. 63. Foshan Shanshui Fenglu Aluminum United States (HTSUS): 7606.12.3091, 10. Anji Chang Hong Chain Manufacturing Co., Ltd. 7606.12.3096, 7604.21.0010, 7604.21.0090, 11. Anshan Zhongda Industry Co., Ltd. 64. Foshan Yong Li Jian Aluminum Co., 7604.29.1010, 7604.29.1090, 7604.29.3060; 12. Aoda Aluminium (Hong Kong) Co., Ltd. 7604.29.3090; 7604.29.5050; 7604.29.5090; Limited 65. Fujian Sanchuan Aluminum Co., Ltd. 8541.90.00.00, 8708.10.30.50, 8708.99.68.90, 13. AsiaAlum Group 66. Fukang Aluminum & Plastic Import 6603.90.8100, 7616.99.51, 8479.89.94, 14. Atlas Integrated Manufacturing Ltd. and Export Co., Ltd. 8481.90.9060, 8481.90.9085, 9031.90.9195, 15. Bath Fitter 67. Fuzhou Sunmodo New Energy 8424.90.9080, 9405.99.4020, 9031.90.90.95, 16. Behr-Hella Thermocontrol (Shanghai) Equipment 7616.10.90.90, 7609.00.00, 7610.10.00, Co. Ltd. 68. Gaotang Xinhai Economy & Trade Co., 7610.90.00, 7615.10.30, 7615.10.71, 17. Belton (Asia) Development Limited Ltd. 7615.10.91, 7615.19.10, 7615.19.30, 18. Belton (Asia) Development Ltd. 69. Genimex Shanghai, Ltd. 7615.19.50, 7615.19.70, 7615.19.90, 19. Birchwoods (Lin’an) Leisure Products 70. Global Hi-Tek Precision Co. Ltd 7615.20.00, 7616.99.10, 7616.99.50, Co., Ltd. 71. Global PMX Dongguan Co., Ltd. 8479.89.98, 8479.90.94, 8513.90.20, 20. Bolnar Hong Kong Ltd. 72. Global Point Technology (Far East) 9403.10.00, 9403.20.00, 7604.21.00.00, 21. Bracalente Metal Products (Suzhou) Limited 7604.29.10.00, 7604.29.30.10, 7604.29.30.50, Co., Ltd. 73. Golden Dragon Precise Copper Tube 7604.29.50.30, 7604.29.50.60, 7608.20.00.30, 22. Brilliance General Equipment Co., Ltd. Group, Inc. 7608.20.00.90, 8302.10.30.00, 8302.10.60.30, 23. Changshu Changshen Aluminum 74. Gold Mountain International 8302.10.60.60, 8302.10.60.90, 8302.20.00.00, Products Co., Ltd. Development, Ltd. 8302.30.30.10, 8302.30.30.60, 8302.41.30.00, 24. Changshu Changsheng Aluminum 75. Gran Cabrio Capital Pte. Ltd. 8302.41.60.15, 8302.41.60.45, 8302.41.60.50, Products Co., Ltd. 76. Gree Electric Appliances 8302.41.60.80, 8302.42.30.10, 8302.42.30.15, 25. Changzhou Changzheng Evaporator 77. Green Line Hose & Fittings 8302.42.30.65, 8302.49.60.35, 8302.49.60.45, Co., Ltd. 78. GT88 Capital Pte. Ltd.

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79. Guang Ya Aluminium Industries (HK) 126. Jiaxing Jackson Travel Products Co., 185. Shanghai Automobile Air Conditioner Ltd. Ltd. Accessories Ltd. 80. Guang Ya Aluminium Industries Co. 127. Jiaxing Taixin Metal Products Co., 186. Shanghai Automobile Air-Conditioner Ltd. Ltd. Accessories Co Ltd. 81. Guang Ya Aluminum Industries 128. Jiuyan Co., Ltd. 187. Shanghai Canghai Aluminum Tube Company Ltd. 129. JMA (HK) Company Limited Packaging Co., Ltd. 82. Guangcheng Aluminum Co., Ltd. 130. Johnson Precision Engineering 188. Shanghai Dofiberone Composites Co. 83. Guangdong Hao Mei Aluminum Co., (Suzhou) Co., Ltd. Ltd. Ltd. 131. Justhere Co., Ltd. 189. Shanghai Dongsheng Metal 84. Guangdong Jianmei Aluminum Profile 132. Kam Kiu Aluminum Products Sdn 190. Shanghai Shen Hang Imp & Exp Co., Company Limited Bhd Ltd. 85. Guangdong JMA Aluminum Profile 133. Kanal Precision Aluminum Product 191. Shanghai Tongtai Precise Aluminum Factory (Group) Co., Ltd. Co., Ltd. Alloy Manufacturing Co. Ltd. 86. Guangdong Midea 134. Karlton Aluminum Company Ltd. 192. Shanghai Top-Ranking Aluminum 87. Guangdong Midea Microwave and 135. Kong Ah International Company Products Co., Ltd. Electrical Appliances Limited 193. Shanghai Top-Ranking New Materials 88. Guangdong Nanhai Foodstuffs Imp. & 136. Kromet International Co., Ltd. Exp. Co., Ltd. 137. Kromet International Inc. 194. Shenzhen Hudson Technology 89. Guangdong Weiye Aluminum Factory 138. Kromet Intl Inc. Development Co. Co., Ltd. 139. Kunshan Giant Light Metal 195. Shenzhen Jiuyuan Co., Ltd. 90. Guangdong Whirlpool Electrical Technology Co., Ltd. 196. Sihui Shi Guo Yao Aluminum Co., Appliances Co., Ltd. 140. Liaoning Zhong Da Industrial Ltd. 91. Guangdong Xin Wei Aluminum Aluminum Co., Ltd. 197. Sincere Profit Products Co., Ltd. 141. Liaoning Zhongwang Group Co., Ltd. 198. Skyline Exhibit Systems (Shanghai) 92. Guangdong Yonglijian Aluminum Co., 142. Liaoyang Zhongwang Aluminum Co. Ltd. Ltd. Profile Co. Ltd. 199. Southwest Aluminum (Group) Co., 93. Guangdong Zhongya Aluminum 143. Longkou Donghai Trade Co., Ltd. Ltd. Company Ltd. 144. MAAX Bath Inc. 200. Springs Window Fashions De Victoria 94. Guangzhou Jangho Curtain Wall 145. MAHLE Holding (China) Co., Ltd. 201. Summit Plastics Nanjing Co. Ltd. System Engineering Co., Ltd. 146. Metal Tech Co Ltd. 202. Suzhou JRP Import & Export Co., Ltd. 203. Suzhou New Hongji Precision Part Co. 95. Guangzhou Mingcan Die-Casting 147. Metaltek Group Co., Ltd. 148. Metaltek Metal Industry Co., Ltd. 204. Tai-Ao Aluminum (Taishan) Co. Ltd. Hardware Products Co., Ltd. 149. Midea Air Conditioning Equipment 205. Taishan City Kam Kiu Aluminium 96. Hangzhou Xingyi Metal Products Co., Co., Ltd. Extrusion Co., Ltd. Ltd. 150. Midea Electric Trading Co., Pte Ltd. 206. Taitoh Machinery Shanghai Co. Ltd. 97. Hanwood Enterprises Limited 151. Midea International Trading Co., Ltd. 207. Taizhou Lifeng Manufacturing Co., 98. Hanyung Alcoba Co., Ltd. 152. Midea International Training Co., Ltd. Ltd. 99. Hanyung Alcobis Co., Ltd. 153. Miland Luck Limited 208. Taizhou United Imp. & Exp. Co., Ltd. 100. Hanyung Metal (Suzhou) Co., Ltd. 154. Nanhai Textiles Import & Export Co., 209. tenKsolar (Shanghai) Co., Ltd. 101. Hao Mei Aluminum Co., Ltd. Ltd. 210. Tianjin Ganglv Nonferrous Metal 102. Hao Mei Aluminum International Co., 155. New Asia Aluminum & Stainless Steel Materials Co., Ltd. Ltd. Product Co., Ltd. 211. Tianjin Jinmao Import & Export Corp., 103. Hebei Xusen Wire Mesh Products Co., 156. New Zhongya Aluminum Factory Ltd. Ltd. 157. Nidec Sankyo Singapore Pte. Ltd. 212. Tianjin Ruxin Electric Heat 104. Henan New Kelong Electrical 158. Nidec Sankyo (Zhejang) Corporation Transmission Technology Co., Ltd. Appliances Co., Ltd. 159. Nidec Sankyo Zhejiang Corporation 213. Tianjin Xiandai Plastic & Aluminum 105. Henan Zhongduo Aluminum 160. Ningbo Coaster International Co., Ltd. Products Co., Ltd. Magnesium New Material Co., Ltd. 161. Ningbo Hi Tech Reliable 214. Tiazhou Lifeng Manufacturing 106. Hitachi High-Technologies (Shanghai) Manufacturing Company Corporation Co., Ltd. 162. Ningbo Innopower Tengda Machinery 215. Top-Wok Metal Co., Ltd. 107. Hong Kong Gree Electric Appliances 163. Ningbo Ivy Daily Commodity Co., Ltd. 216. Traffic Brick Network, LLC Sales Limited 164. Ningbo Yili Import and Export Co., 217. Union Aluminum (SIP) Co. 108. Hong Kong Modern Non-Ferrous Ltd. 218. Union Industry (Asia) Co., Ltd. Metal 165. North China Aluminum Co., Ltd. 219. USA Worldwide Door Components 109. Honsense Development Company 166. North Fenghua Aluminum Ltd. (Pinghu) Co., Ltd. 110. Hui Mei Gao Aluminum Foshan Co., 167. Northern States Metals 220. Wenzhou Shengbo Decoration & Ltd. 168. PanAsia Aluminum (China) Limited Hardware 111. Huixin Aluminum 169. PENCOM Dongguan China 221. Whirlpool Canada L.P. 112. IDEX Dinglee Technology (Tianjin) 170. Pengcheng Aluminum Enterprise Inc. 222. Whirlpool (Guangdong) Co., Ltd. 171. Permasteelisa Hong Kong Ltd. 223. Whirlpool Microwave Products 113. IDEX Health 172. Permasteelisa South China Factory Development Ltd. 114. IDEX Technology Suzhou Co., Ltd. 173. Pingguo Aluminum Company Limited 224. Wonjin Autoparts 115. Innovative Aluminum (Hong Kong) 174. Pingguo Asia Aluminum Co., Ltd. 225. Worldwide Door Components, Inc. Limited 175. Popular Plastics Company Limited 226. WTI Building Products, Ltd. 116. iSource Asia 176. Press Metal International Ltd. 227. Wuxi Lutong Fiberglass Doors Co., 117. Jackson Travel Products Co., Ltd. 177. Qingdao Sea Nova Building Ltd. 118. Jangho Curtain Wall Hong Kong Ltd. 178. Samuel, Son & Co., Ltd. 228. Xinchang Yongqiang Air Conditioning 119. Jiangmen Jianghai Foreign Ent. Gen. 179. Sanchuan Aluminum Co., Ltd. Accessories Co., Ltd. 120. Jiangmen Jianghai District Foreign 180. Sanhua (Hangzhou) Micro Channel 229. Xin Wei Aluminum Co. Economic Enterprise Corp. Ltd. Heat Exchanger Co., Ltd. 230. Xin Wei Aluminum Company Limited 121. Jiangmen Qunxing Hardware 181. Shandong Fukang Aluminum & 231. Xinya Aluminum & Stainless Steel Diecasting Co., Ltd. Plastic Co. Ltd. Product Co., Ltd. 122. Jiangsu Changfa Refrigeration Co. 182. Shandong Huajian Aluminum Group 232. Yuyao Fanshun Import & Export Co., 123. Jiangyin Suncitygaylin 183. Shangdong Huasheng Pesticide Ltd. 124. Jiangyin Trust International Inc. Machinery Co. 233. Yuyao Haoshen Import & Export 125. Jiangyin Xinhong Doors and Windows 184. Shangdong Nanshan Aluminum Co., 234. Zahoqing China Square Industry Co., Ltd. Ltd. Limited

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235. Zhaoqing Asia Aluminum Factory at: https://attendee.gotowebinar.com/ Although non-emergency issues not Company Ltd. register/5508517383600709904. contained in this agenda may come 236. Zhaoqing China Square Industrial Ltd. SEDAR address: South Atlantic before this group for discussion, those 237. Zhaoqing China Square Industry Fishery Management Council, 4055 issues may not be the subject of formal Limited Faber Place Drive, Suite 201, North 238. Zhaoqing New Zhongya Aluminum action during this meeting. Action will Co., Ltd. Charleston, SC 29405; be restricted to those issues specifically 239. Zhejiang Anji Xinxiang Aluminum www.sedarweb.org. identified in this notice and any issues Co., Ltd. FOR FURTHER INFORMATION CONTACT: arising after publication of this notice 240. Zhejiang Lilies Industrial and Kathleen Howington, SEDAR that require emergency action under Commercial Co. Coordinator, 4055 Faber Place Drive, section 305(c) of the Magnuson-Stevens 241. Zhejiang Yili Automobile Air Suite 201, North Charleston, SC 29405; Fishery Conservation and Management Condition Co., Ltd. phone: (843) 571–4366; email: Act, provided the public has been 242. Zhejiang Yongkang Listar Aluminum notified of the intent to take final action Industry Co., Ltd. [email protected]. 243. Zhejiang Zhengte Group Co., Ltd. SUPPLEMENTARY INFORMATION: The Gulf to address the emergency. 244. Zhenjiang Xinlong Group Co., Ltd. of Mexico, South Atlantic, and Special Accommodations 245. Zhongshan Daya Hardware Co., Ltd. Caribbean Fishery Management 246. Zhongshan Gold Mountain Aluminum Councils, in conjunction with NOAA This meeting is accessible to people Factory Ltd. Fisheries and the Atlantic and Gulf with disabilities. Requests for auxiliary 247. Zhongya Shaped Aluminum (HK) aids should be directed to the SAFMC Holding Limited States Marine Fisheries Commissions, have implemented the Southeast Data, office (see ADDRESSES) at least 10 248. Zhuhai Runxingtai Electrical business days prior to the meeting. Equipment Co., Ltd. Assessment and Review (SEDAR) process, a multi-step method for Note: The times and sequence specified in [FR Doc. 2021–01370 Filed 1–21–21; 8:45 am] determining the status of fish stocks in this agenda are subject to change. BILLING CODE 3510–DS–P the Southeast Region. SEDAR is a three- step process including: (1) Data Authority: 16 U.S.C. 1801 et seq. DEPARTMENT OF COMMERCE Workshop; (2) Assessment Process Dated: January 15, 2021. utilizing webinars; and (3) Review Rey Marquez, National Oceanic and Atmospheric Workshop. The product of the Data Acting Deputy Director, Office of Sustainable Administration Workshop is a data report which Fisheries, National Marine Fisheries Service. compiles and evaluates potential [FR Doc. 2021–01391 Filed 1–21–21; 8:45 am] [RTID 0648–XA825] datasets and recommends which BILLING CODE 3510–22–P Fisheries of the South Atlantic; datasets are appropriate for assessment Southeast Data, Assessment, and analyses. The product of the Assessment Review (SEDAR); Public Meeting Process is a stock assessment report DEPARTMENT OF COMMERCE which describes the fisheries, evaluates AGENCY: National Marine Fisheries the status of the stock, estimates National Oceanic and Atmospheric Service (NMFS), National Oceanic and biological benchmarks, projects future Administration Atmospheric Administration (NOAA), population conditions, and recommends Commerce. research and monitoring needs. The Agency Information Collection Activities; Submission to the Office of ACTION: Notice of SEDAR 66 Assessment assessment is independently peer Management and Budget (OMB) for Webinar III for South Atlantic Tilefish. reviewed at the Review Workshop. The product of the Review Workshop is a Review and Approval; Comment SUMMARY: The SEDAR 66 stock Summary documenting panel opinions Request; Fishery Capacity Reduction assessment of the South Atlantic stock regarding the strengths and weaknesses Program Buyback Requests of Tilefish will consist of a data scoping of the stock assessment and input data. AGENCY: National Oceanic & webinar, a workshop, and a series of Participants for SEDAR Workshops are assessment webinars. See Atmospheric Administration (NOAA), appointed by the Gulf of Mexico, South Commerce. SUPPLEMENTARY INFORMATION. Atlantic, and Caribbean Fishery DATES: The SEDAR 66 South Atlantic Management Councils and NOAA ACTION: Notice of Information Tilefish Assessment Webinar III will be Fisheries Southeast Regional Office, Collection, request for comment. held via webinar on February 18, 2021, Highly Migratory Species Management SUMMARY: The Department of from 12 p.m. until 3 p.m., EST. The Division, and Southeast Fisheries Commerce, in accordance with the established times may be adjusted as Science Center. Participants include: Paperwork Reduction Act of 1995 necessary to accommodate the timely Data collectors and database managers; (PRA), invites the general public and completion of discussion relevant to the stock assessment scientists, biologists, other Federal agencies to comment on assessment process. Such adjustments and researchers; constituency proposed, and continuing information may result in the meeting being representatives including fishermen, collections, which helps us assess the extended from or completed prior to the environmentalists, and non- impact of our information collection time established by this notice. governmental organizations (NGOs); requirements and minimize the public’s Additional SEDAR 66 webinar dates international experts; and staff of reporting burden. The purpose of this and times will publish in a subsequent Councils, Commissions, and state and notice is to allow for 60 days of public issue in the Federal Register. federal agencies. ADDRESSES: The items of discussion at the SEDAR comment preceding submission of the Meeting address: The SEDAR 66 66 South Atlantic Tilefish Assessment collection to OMB. South Atlantic Tilefish Assessment Webinar III are as follows: DATES: To ensure consideration, Webinar III will be held via webinar. • Finalize discussion on base model comments regarding this proposed The webinar is open to members of the configuration, sensitivity runs, and information collection must be received public. Registration is available online projections on or before March 23, 2021.

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ADDRESSES: Interested persons are requirements. NMFS requests collection techniques or other forms of invited to submit written comments to information from participating buyback information technology. Adrienne Thomas, NOAA PRA Officer, participants to track repayments of the Comments that you submit in at [email protected]. Please loans as well as ensure accurate response to this notice are a matter of reference OMB Control Number 0648– management and monitoring of the public record. We will include or 0376 in the subject line of your loans. The fees for recordkeeping and summarize each comment in our request comments. Do not submit Confidential reporting requirements at 50 CFR parts to OMB to approve this ICR. Before Business Information or otherwise 600.1013 through 600.1017 form the including your address, phone number, sensitive or protected information. basis for the collection of information. email address, or other personal identifying information in your FOR FURTHER INFORMATION CONTACT: II. Method of Collection Requests for additional information or comment, you should be aware that specific questions related to collection Paper reports or electronic reports are your entire comment—including your activities should be directed to Elaine required from buyback participants. personal identifying information—may Saiz, Chief, Financial Services Division, Methods of submittal include mailing of be made publicly available at any time. NOAA National Marine Fisheries paper reports, electronic submission via While you may ask us in your comment Service, (301) 427–8725 or elaine.saiz@ the internet, and/or facsimile to withhold your personal identifying noaa.gov. transmission. information from public review, we cannot guarantee that we will be able to SUPPLEMENTARY INFORMATION: III. Data do so. I. Abstract OMB Control Number: 0648–0376. Sheleen Dumas, This request is for extension of a Form Number(s): None. Department PRA Clearance Officer, Office of currently approved information Type of Review: Regular submission the Chief Information Officer, Commerce collection. (extension of a current information Department. The Sustainable Fisheries Act (SFA) collection). [FR Doc. 2021–01393 Filed 1–21–21; 8:45 am] amended the Magnuson-Stevens Fishery Affected Public: Business or other for- BILLING CODE 3510–22–P Conservation and Management Act profit organizations; individuals or (MSA) to provide for voluntary households; and state, local, or tribal reduction of excess fishing capacity government. DEPARTMENT OF COMMERCE through fishing capacity reduction Estimated Number of Respondents: (buyback) programs. Excess fishing 200. National Oceanic and Atmospheric capacity decreases fisheries earnings, Estimated Time per Response: Administration Implementation plan, 6,634 hours; complicates fishery management, and Agency Information Collection referenda votes, bids, seller/buyer imperils fishery conservation. The Activities; Submission to the Office of reports and annual fee collection statutory objective of a program is ‘‘to Management and Budget (OMB) for reports, 4 hours each; completion of fish obtain the maximum sustained Review and Approval; Comment ticket, 10 minutes; monthly fee reduction in fishing capacity at the least Request; West Coast Region Vessel collection report, 2 hours; advising cost and in a minimum period of time.’’ Identification Requirements Buybacks pay fishermen either to: (1) holder/owner of conflict with accepted Surrender their fishing permits; or (2) bidders’ representations, 1 hour; AGENCY: National Oceanic & both surrender their permits and either potentially 270 hours-state approval/ Atmospheric Administration (NOAA), scrap their fishing vessels or restrict review of plans. Estimated Total Annual Commerce. vessel title to prevent fishing. Buybacks Burden Hours: 15,838. ACTION: Notice of Information can involve either a Federal or State Estimated Total Annual Cost to Collection, request for comment. fishery. Buybacks can be funded via a Public: $1,596 in recordkeeping/ long-term loan from the Federal reporting costs. SUMMARY: The Department of government to the fishery (industry- Respondent’s Obligation: Required to Commerce, in accordance with the funded buybacks), to be repaid by the obtain or retain benefits, Mandatory. Paperwork Reduction Act of 1995 industry by post-buyback landing fees, Legal Authority: Magnuson-Stevens (PRA), invites the general public and or funded from appropriations (non- Fishery Conservation and Management other Federal agencies to comment on industry funded) or other non-loan Reauthorization Act. proposed, and continuing information sources of funds. Programs involving collections, which helps us assess the IV. Request for Comments industry financed loans are authorized impact of our information collection by section 1111 of title XI of the We are soliciting public comments to requirements and minimize the public’s Merchant Marine Act, 1936. permit the Department/Bureau to: (a) reporting burden. The purpose of this NOAA National Marine Fisheries Evaluate whether the proposed notice is to allow for 60 days of public Service (NMFS) established programs to information collection is necessary for comment preceding submission of the reduce excess fishing capacity by paying the proper functions of the Department, collection to OMB. fishermen to surrender their vessels/ including whether the information will DATES: To ensure consideration, permits. The information collected by have practical utility; (b) Evaluate the comments regarding this proposed NMFS involves the submission of accuracy of our estimate of the time and information collection must be received buyback requests by industry, cost burden for this proposed collection, on or before March 23, 2021. submission of bids, referenda of fishery including the validity of the ADDRESSES: Interested persons are participants and reporting of collection methodology and assumptions used; (c) invited to submit written comments to of fees to repay buyback loans. For Evaluate ways to enhance the quality, Adrienne Thomas, NOAA PRA Officer, buybacks involving State-managed utility, and clarity of the information to at [email protected]. Please fisheries, the State may be involved in be collected; and (d) Minimize the reference OMB Control Number 0648– developing the buyback plan and reporting burden on those who are to 0355 in the subject line of your complying with other information respond, including the use of automated comments. Do not submit Confidential

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Business Information or otherwise Estimated Time per Response: 15 patent or trademark rights holders are sensitive or protected information. minutes per gear marking. experiencing infringement by state FOR FURTHER INFORMATION CONTACT: Estimated Total Annual Burden entities without adequate remedies Requests for additional information or Hours: 901 hours. under state law, and the extent to which specific questions related to collection Estimated Total Annual Cost to such infringements appear to be based activities should be directed to Keeley Public: $25,701. on intentional or reckless conduct. With Kent, (206) 247–8252 or keeley.kent@ Respondent’s Obligation: Mandatory. this new notice, the USPTO is noaa.gov. Legal Authority: 50 CFR 660.12. supplementing the previous notice with SUPPLEMENTARY INFORMATION: IV. Request for Comments additional questions. DATES: Comment date: Written I. Abstract We are soliciting public comments to permit the Department/Bureau to: (a) comments must be received on or before This request is for extension of a Evaluate whether the proposed February 22, 2021. currently approved information information collection is necessary for ADDRESSES: For reasons of government collection. the proper functions of the Department, efficiency, comments must be submitted The success of fisheries management including whether the information will through the Federal eRulemaking Portal programs depends significantly on have practical utility; (b) Evaluate the at www.regulations.gov. To submit regulatory compliance. The vessel accuracy of our estimate of the time and comments via the portal, enter docket identification requirement is essential to cost burden for this proposed collection, number PTO–T–2020–0043 on the facilitate enforcement. The ability to including the validity of the homepage and click ‘‘search.’’ The site link fishing (or other activity) to the methodology and assumptions used; (c) will provide a search results page listing vessel owner or operator is crucial to Evaluate ways to enhance the quality, all documents associated with this enforcement of regulations issued under utility, and clarity of the information to docket. Find a reference to this Request the authority of the Magnuson-Stevens be collected; and (d) Minimize the for Information and click on the Fishery Conservation and Management reporting burden on those who are to ‘‘Comment Now!’’ icon, complete the Act. A vessel’s official number is respond, including the use of automated required fields, and enter or attach your required to be displayed on the port and collection techniques or other forms of comments. Attachments to electronic starboard sides of the deckhouse or hull, ® information technology. comments will be accepted in ADOBE and on a weather deck. It identifies each Comments that you submit in portable document format or vessel and should be visible at distances ® response to this notice are a matter of MICROSOFT WORD format. Because at sea and in the air. Law enforcement public record. We will include or comments will be made available for personnel rely on vessel marking summarize each comment in our request public inspection, information that the information to assure compliance with to OMB to approve this ICR. Before submitter does not desire to make fisheries management regulations. including your address, phone number, public, such as an address or phone Vessels that qualify for particular email address, or other personal number, should not be included in the fisheries are also readily identified, and identifying information in your comments. this allows for more cost-effective comment, you should be aware that Visit the Federal eRulemaking Portal enforcement. Cooperating fishermen your entire comment—including your (www.regulations.gov) for additional also use the vessel numbers to report personal identifying information—may instructions on providing comments via suspicious or non-compliant activities be made publicly available at any time. the portal. If electronic submission of that they observe in unauthorized areas. While you may ask us in your comment comments is not feasible due to a lack The identifying number on fishing to withhold your personal identifying of access to a computer and/or the vessels is used by the National Marine information from public review, we internet, please contact the USPTO Fisheries Service (NMFS), the United cannot guarantee that we will be able to using the contact information below for States Coast Guard (USCG), and other do so. special instructions regarding how to marine agencies in issuing regulations, submit comments by mail or by hand prosecutions, and other enforcement Sheleen Dumas, delivery, based on the public’s ability to actions necessary to support sustainable Department PRA Clearance Officer, Office of obtain access to USPTO facilities at the fisheries behaviors as intended in the Chief Information Officer, Commerce time. regulations. Regulation-compliant Department. Submissions of Business Confidential fishermen ultimately benefit from these [FR Doc. 2021–01392 Filed 1–21–21; 8:45 am] Information: Any submissions requirements, as unauthorized and BILLING CODE 3510–22–P containing business confidential illegal fishing is deterred, and more information must be marked burdensome regulations are avoided. ‘‘confidential treatment requested’’ and DEPARTMENT OF COMMERCE II. Method of Collection submitted through www.regulations.gov. Submitters should provide an index Fishing vessel owners physically Patent and Trademark Office listing the document(s) or information mark vessels with identification [Docket No. PTO–T–2020–0043] they would like the USPTO to withhold. numbers in three locations per vessel. The index should include information III. Data Sovereign Immunity Study such as numbers used to identify the OMB Control Number: 0648–0355. AGENCY: Patent and Trademark Office, relevant document(s) or information, Form Number(s): None. Department of Commerce. document title and description, and Type of Review: Regular submission, ACTION: Request for information. relevant page numbers and/or section extension of a current information numbers within a document. Submitters collection. SUMMARY: The United States Patent and should provide a statement explaining Affected Public: Business or other for- Trademark Office (USPTO) published a their grounds for objecting to the profit organizations. notice in the Federal Register on disclosure of the information to the Estimated Number of Respondents: November 5, 2020, requesting public as well. The USPTO also requests 1,203. information on the extent to which that submitters of business confidential

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information include a non-confidential provide adequate remedies if accordance with the Paperwork version (either redacted or summarized) infringement occurs? Reduction Act of 1995 (PRA) (44 U.S.C. that will be available for public viewing Andrei Iancu, 3506(c)(2)(A)), provides the general and posted on www.regulations.gov. In public and Federal agencies with an the event that the submitter cannot Under Secretary of Commerce for Intellectual Property and Director of the United States opportunity to comment on proposed, provide a non-confidential version of its Patent and Trademark Office. revised, and continuing collections of submission, the USPTO requests that information. This helps the Department the submitter post a notice in the docket [FR Doc. 2021–01305 Filed 1–21–21; 8:45 am] BILLING CODE 3510–16–P assess the impact of its information stating that it has provided the USPTO collection requirements and minimize with business confidential information. the public’s reporting burden. It also Should a submitter either fail to docket DEPARTMENT OF EDUCATION helps the public understand the a non-confidential version of its Department’s information collection submission or to post a notice that [Docket No.: ED–2021–SCC–0013] requirements and provide the requested business confidential information has data in the desired format. ED is been provided, the USPTO will note the Agency Information Collection receipt of the submission on the docket Activities; Comment Request; Office of soliciting comments on the proposed with the submitter’s organization or Special Education and Rehabilitative information collection request (ICR) that name (to the degree permitted by law) Services Peer Reviewer Data Form is described below. The Department of and the date of submission. Education is especially interested in AGENCY: Anonymous submissions: The USPTO Office of Special Education and public comment addressing the will accept anonymous submissions. Rehabilitative Services (OSERS), following issues: (1) Is this collection Enter ‘‘N/A’’ in the required fields if you Department of Education (ED). necessary to the proper functions of the wish to remain anonymous. ACTION: Notice. Department; (2) will this information be processed and used in a timely manner; FOR FURTHER INFORMATION CONTACT: SUMMARY: In accordance with the (3) is the estimate of burden accurate; Laura Hammel, by telephone at 571– Paperwork Reduction Act of 1995, ED is (4) how might the Department enhance 272–9300. proposing an extension without change SUPPLEMENTARY INFORMATION: At the of a currently approved collection. the quality, utility, and clarity of the information to be collected; and (5) how request of Senators Thom Tillis and DATES: Interested persons are invited to might the Department minimize the Patrick Leahy, the USPTO is submit comments on or before March burden of this collection on the undertaking a study of the extent to 23, 2021. which patent or trademark rights respondents, including through the use ADDRESSES: To access and review all the holders are experiencing infringement of information technology. Please note documents related to the information by state entities without adequate that written comments received in collection listed in this notice, please remedies under state law, and the extent response to this notice will be use http://www.regulations.gov by to which such infringements appear to considered public records. searching the Docket ID number ED– be based on intentional or reckless 2021–SCC–0013. Comments submitted Title of Collection: Office of Special conduct. in response to this notice should be Education and Rehabilitative Services On November 5, 2020, the USPTO Peer Reviewer Data Form. published a notice in the Federal submitted electronically through the Register seeking public input on these Federal eRulemaking Portal at http:// OMB Control Number: 1820–0583. www.regulations.gov by selecting the matters. See 85 FR 70589 (Nov. 5, 2020). Type of Review: Extension without Docket ID number or via postal mail, That notice set forth various questions change of a currently approved commercial delivery, or hand delivery. relevant to the study. The USPTO collection. appreciates the submissions received to If the regulations.gov site is not available to the public for any reason, Respondents/Affected Public: date in response to that notice and will Individuals or Households. consider them in preparing the study. In ED will temporarily accept comments at addition, the USPTO now invites [email protected]. Please include the Total Estimated Number of Annual interested members of the public to docket ID number and the title of the Responses: 350. respond to questions posed in that information collection request when requesting documents or submitting Total Estimated Number of Annual notice, and/or to the below questions. Burden Hours: 88. The public can also provide any other comments. Please note that comments Abstract: The OSERS Peer Reviewer information it believes to be relevant. submitted by fax or email and those Data Form (OPRDF) is used by Office of 1. If you are a patent or trademark submitted after the comment period will right holder, has a state government or not be accepted. Written requests for Special Education and Rehabilitative state entity ever used your patent or information or comments submitted by Services (OSERS) staff to identify trademark without permission? If yes: postal mail or delivery should be potential reviewers who would be (a) Did you pursue legal action for that addressed to the PRA Coordinator of the qualified to review specific types of use? Why or why not? (b) Were you able Strategic Collections and Clearance grant applications for funding. OSERS to seek relief under state law? (c) Did Governance and Strategy Division, U.S. uses this form to collect background the availability of the defense of Department of Education, 400 Maryland contact information for each potential sovereign immunity deter you from Ave. SW, LBJ, Room 6W208D, reviewer; and to provide information on litigating the matter in federal court? Washington, DC 20202–8240. any reasonable accommodations that 2. As a state or state entity, do you FOR FURTHER INFORMATION CONTACT: For might be required by the individual. believe that (a) your state or state entity specific questions related to collection OSERS is requesting an extension of the has policies or practices that provide activities, please contact Justin expiration date with no changes to the safeguards against the intentional or Hampton, (202) 245–6111. form. The previous version of the reckless infringement of patents and SUPPLEMENTARY INFORMATION: The OPRDF, 1820–0583, will expire on May trademarks, and (b) relevant state laws Department of Education (ED), in 31, 2021.

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Dated: January 14, 2021. recognition, we have identified both the must relate to the agency’s compliance Kate Mullan, current scope of recognition and the with the Criteria for the Recognition of PRA Coordinator, Strategic Collections and requested scope of recognition. Accrediting Agencies, which are available at https://www.ed.gov/ Clearance, Governance and Strategy Division, Applications for Renewal of Office of Chief Data Officer, Office of accreditation?src=rn. Planning, Evaluation and Policy Recognition Only written materials submitted by Development. 1. American Podiatric Medical the deadline to the email address listed [FR Doc. 2021–01294 Filed 1–21–21; 8:45 am] Association, Council on Podiatric in this notice, and in accordance with BILLING CODE 4000–01–P Medical Education. Scope of these instructions, become part of the recognition: The accreditation and official record concerning agencies preaccreditation (‘‘Provisional scheduled for review and are considered DEPARTMENT OF EDUCATION Accreditation’’) throughout the United by the Department and NACIQI in their States of freestanding colleges of deliberations. Accrediting Agencies Currently podiatric medicine and programs of Electronic Access to this Document: Undergoing Review for the Purposes podiatric medicine, including first The official version of this document is of Recognition by the U.S. Secretary of professional programs leading to the the document published in the Federal Education degree of Doctor of Podiatric Medicine. Register. Free internet access to the 2. The Council on Chiropractic AGENCY: Office of Postsecondary official edition of the Federal Register Education, Accreditation Group, U.S. Education. Scope of recognition: The and the Code of Federal Regulations is Department of Education. accreditation of programs leading to the available via the Federal Digital System Doctor of Chiropractic degree and at: www.gpo.gov/fdsys. At this site you ACTION: Call for written third-party single-purpose institutions offering the can view this document, as well as all comments. Doctor of Chiropractic program. other documents of the Department SUMMARY: This notice provides 3. Commission on English Language published in the Federal Register, in information to members of the public on Program Accreditation. Scope of text or Adobe Portable Document submitting written comments for recognition: The accreditation of Format (PDF). To use PDF, you must accrediting agencies currently postsecondary, non-degree-granting have Adobe Acrobat Reader, which is undergoing review for purposes of English language programs and available free at the site. You may also recognition by the U.S. Secretary of institutions in the United States access documents of the Department Education. including those programs offered via published in the Federal Register by distance education. using the article search feature at: FOR FURTHER INFORMATION CONTACT: 4. Joint Review Committee on www.federalregister.gov. Specifically, Herman Bounds, Director, Accreditation Education in Radiologic Technology. through the advanced search feature at Group, Office of Postsecondary Scope of recognition: The accreditation this site, you can limit your search to Education, U.S. Department of of educational programs in radiography, documents published by the Education, 400 Maryland Avenue SW, magnetic resonance, radiation therapy, Department. Room 270–01, Washington, DC 20202, and medical dosimetry, including those Authority: 20 U.S.C. 1011c telephone: (202) 453–6128, or email: offered via distance education, at the [email protected]. certificate, associate, and baccalaureate Christopher McCaghren, SUPPLEMENTARY INFORMATION: This levels. Acting Assistant Secretary, Office of request for written third-party 5. North Dakota Board of Nursing. Postsecondary Education. comments concerning the performance Scope of Recognition: Recognized for [FR Doc. 2021–01357 Filed 1–21–21; 8:45 am] of accrediting agencies under review by the Approval of Nurse Education in the BILLING CODE 4000–01–P the Secretary of Education is required State of North Dakota. by § 496(n)(1)(A) of the Higher Education Act (HEA) of 1965, as Submission of Written Comments DEPARTMENT OF EDUCATION amended, and pertains to the winter Regarding a Specific Accrediting 2022 meeting of the National Advisory Agency Under Review Notice Inviting Applications for Committee on Institutional Quality and Written comments about the Proprietary Institutions Under the Integrity (NACIQI). The meeting date recognition of any of the accrediting Higher Education Emergency Relief and location have not been determined, agencies listed above must be received Fund (HEERF), Section 314(a)(4); but will be announced in a later Federal by February 19, 2021 in the Coronavirus Response and Relief Register notice. In addition, a later [email protected] mailbox Supplemental Appropriations Act, 2021 Federal Register notice will describe and include the subject line ‘‘Written (CRRSAA); Correction how to register to provide oral Comments: (agency name).’’ The email AGENCY: Office of Postsecondary comments at the meeting. must include the name(s), title, Education, Department of Education. Agencies Under Review and organization/affiliation, mailing ACTION: Notice; correction. Evaluation: The Department requests address, email address, and telephone written comments from the public on number of the person(s) making the SUMMARY: On January 15, 2021, the the following accrediting agencies, comment. Comments should be Department published a notice in the which are currently undergoing review submitted as a Microsoft Word Federal Register inviting applications and evaluation by the Accreditation document or in a medium compatible (NIA) from eligible proprietary Group, and which will be reviewed at with Microsoft Word (not a PDF file) institutions listed on the Department’s the winter 2022 NACIQI meeting. that is attached to an electronic mail section 314(a)(4) allocation table to The agencies are listed by the type of message (email) or provided in the body apply for funding under the Proprietary application each has submitted. We of an email message. Comments about Institution Grant Funds for Students have also indicated each agency’s an agency that has submitted a petition program, Catalog of Federal Domestic current scope of recognition. If any for initial recognition, renewal of Assistance (CFDA) number 84.425Q. agency requests a change to its scope of recognition, or an expansion of scope This notice corrects the Grants.gov

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Opportunity Number and the OMB Instructions’’, we remove ‘‘XXX Date [90 Docket Numbers: RP21–380–000. control number associated with this days after publication]’’ and add in its Applicants: NEXUS Gas collection, and clarifies the deadline place ‘‘April 15, 2021’’. Transmission, LLC. date for transmittal of applications. All Program Authority: Section 314 of the other information in the NIA, including Coronavirus Response and Relief Description: § 4(d) Rate Filing: the April 15, 2021, deadline for Supplemental Appropriations Act, Negotiated Rate—CNX Gas to Direct transmittal of applications, remains the 2021. Energy 961387 to be effective 1/14/2021. same. Accessible Format: On request to the Filed Date: 1/13/21. contact person listed under FOR FURTHER DATES: This correction is applicable Accession Number: 20210113–5032. January 22, 2021. INFORMATION CONTACT, individuals with Comments Due: 5 p.m. ET 1/25/21. FOR FURTHER INFORMATION CONTACT: disabilities can obtain this notice, the Karen Epps, U.S. Department of NIA, and a copy of the application in an Docket Numbers: RP21–381–000. Education, 400 Maryland Avenue SW, accessible format. The Department will provide the requestor with an accessible Applicants: Tennessee Gas Pipeline Room 250–64, Washington, DC 20202. Company, L.L.C. Telephone: The Department of format that may include Rich Text Education HEERF Call Center at (202) Format (RTF) or text format (txt), a Description: § 4(d) Rate Filing: 377–3711. Email: [email protected]. Please thumb drive, an MP3 file, braille, large Abandonment of X–23 in Volume No.2 also visit our HEERF website at: https:// print, audiotape, or compact disc, or to be effective 2/12/2021. www2.ed.gov/about/offices/list/ope/ other accessible format. Electronic Access to This Document: Filed Date: 1/13/21. crrsaa.html. Accession Number: 20210113–5060. If you use a telecommunications The official version of this document is device for the deaf (TDD) or a text the document published in the Federal Comments Due: 5 p.m. ET 1/25/21. Register. You may access the official telephone (TTY), call the Federal Relay Docket Numbers: RP21–382–000. Service (FRS), toll free, at 1–800–877– edition of the Federal Register and the 8339. Code of Federal Regulations at Applicants: Algonquin Gas www.govinfo.gov. At this site you can Transmission, LLC. SUPPLEMENTARY INFORMATION: On view this document, as well as all other Jaunary 15, 2021, we published in the Description: § 4(d) Rate Filing: documents of this Department Negotiated Rate—Yankee Gas 510802 Federal Register an NIA for Proprietary published in the Federal Register, in Release eff 1–14–2021 to be effective 1/ Institutions for the HEERF section text or Portable Document Format 14/2021. 314(a)(4) program (86 FR 4010). This (PDF). To use PDF you must have notice specifies that the correct Adobe Acrobat Reader, which is Filed Date: 1/13/21. Grants.gov Opportunity Number is ED– available free at the site. Accession Number: 20210113–5131. GRANTS–011521–005 and that the You may also access documents of the OMB control number associated with Department published in the Federal Comments Due: 5 p.m. ET 1/25/21. this collection is 1840–0852, and Register by using the article search The filings are accessible in the clarifies the deadline date for feature at: www.federalregister.gov. Commission’s eLibrary system (https:// transmittal of applications. All other Specifically, through the advanced elibrary.ferc.gov/idmws/search/ requirements and conditions in the NIA search feature at this site, you can limit fercgensearch.asp) by querying the remains the same. your search to documents published by docket number. the Department. Corrections Any person desiring to intervene or In FR Doc. 2021–00936 appearing on Christopher J. McCaghren, protest in any of the above proceedings page 4010 of the Federal Register of Acting Assistant Secretary for Postsecondary must file in accordance with Rules 211 January 15, 2021, the following Education. and 214 of the Commission’s corrections are made: [FR Doc. 2021–01531 Filed 1–21–21; 8:45 am] Regulations (18 CFR 385.211 and 1. On page 4010, in the third column, BILLING CODE 4000–01–P 385.214) on or before 5:00 p.m. Eastern under SUMMARY and after ‘‘This notice time on the specified date(s). Protests relates to the approved information may be considered, but intervention is collection under OMB control number’’, DEPARTMENT OF ENERGY necessary to become a party to the we remove ‘‘XXXX–XXXX’’ and add in proceeding. its place ‘‘1840–0852’’. Federal Energy Regulatory 2. On page 4011, in the second Commission eFiling is encouraged. More detailed column, under ‘‘IV. Application information relating to filing Submission and Information’’ and after Combined Notice of Filings requirements, interventions, protests, ‘‘1. Application Sumbission Take notice that the Commission has service, and qualifying facilities filings Instructions’’, we remove the sentence received the following Natural Gas can be found at: http://www.ferc.gov/ ‘‘The Grants.gov Funding Opportunity Pipeline Rate and Refund Report filings: docs-filing/efiling/filing-req.pdf. For Numbers are ED–GRANTS–041020–003 Docket Number: PR21–15–000. other information, call (866) 208–3676 for the Student Aid Portion and ED– Applicants: Columbia Gas of (toll free). For TTY, call (202) 502–8659. GRANTS–042120–004 for the Maryland, Inc. Dated: January 14, 2021. Institutional Portion’’ and add in its Description: Tariff filing per Kimberly D. Bose, place ‘‘The Grants.gov Funding 284.123(b),(e)/: CMD Rates effective Dec Secretary. Opportunity Number is ED–GRANTS– 11 2020 to be effective 12/11/2020 011521–005.’’ under PR21–15. [FR Doc. 2021–01350 Filed 1–21–21; 8:45 am] 3. On page 4011, in the second Filed Date: 1/11/2021. BILLING CODE 6717–01–P column, under ‘‘IV. Application Accession Number: 202101115173. Submission and Information’’ and after Comments/Protests Due: 5 p.m. ET 2/ ‘‘1. Application Sumbission 1/2021.

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DEPARTMENT OF ENERGY In addition to publishing the full text the ‘‘eLibrary’’ link. Enter the docket of this document in the Federal number, excluding the last three digits Federal Energy Regulatory Register, the Commission provides all in the docket number field, to access the Commission interested persons an opportunity to document. At this time, the Commission view and/or print the contents of this has suspended access to the [Docket No. EL21–41–000] document via the internet through the Commission’s Public Reference Room, Commission’s Home Page (http:// due to the proclamation declaring a DTE Electric Company v. Midcontinent ferc.gov) using the ‘‘eLibrary’’ link. Independent System Operator, Inc. and National Emergency concerning the Enter the docket number excluding the Novel Coronavirus Disease (COVID–19), International Transmission Company, last three digits in the docket number LLC; Notice of Complaint issued by the President on March 13, field to access the document. At this 2020. For assistance, contact FERC Take notice that on January 14, 2021, time, the Commission has suspended Online Support at access to the Commission’s Public pursuant to Section 206 and Section 306 [email protected] or toll- 1 Reference Room, due to the of the Federal Power Act and Rule 206 free at (866) 208–3676, or for TTY, (202) proclamation declaring a National of the Rules of Practice and Procedure 502–8659. of the Federal Energy Regulatory Emergency concerning the Novel Commission (Commission), 2 DTE Coronavirus Disease (COVID–19), issued You may also register online at Electric Company (Complainant) filed a by the President on March 13, 2020. For https://ferconline.ferc.gov/ formal complaint against Midcontinent assistance, contact the Federal Energy eSubscription.aspx to be notified via Independent System Operator, Inc. Regulatory Commission at email of new filings and issuances (MISO) and International Transmission [email protected], or call related to this or other pending projects. Company, LLC, dba ITC Transmission toll-free, (886) 208–3676 or TYY, (202) For assistance, contact FERC Online (ITCT or Respondent), alleging that 502–8659. Support. Comment Date: 5:00 p.m. Eastern MISO has inappropriately included a Any comments should be filed within Time on February 3, 2021. local distribution project proposed by 30 days from the date of this notice. ITCT in MISO’s 2019 Transmission Dated: January 14, 2021. Expansion Plan and that such project The Commission strongly encourages Kimberly D. Bose, electronic filing. Please file comments must be removed, all as more fully Secretary. explained in the complaint. using the Commission’s eFiling system [FR Doc. 2021–01345 Filed 1–21–21; 8:45 am] The Complainant certifies that copies at https://ferconline.ferc.gov/ BILLING CODE 6717–01–P of the complaint were served on the eFiling.aspx. Commenters can submit contacts listed for Respondent in the brief comments up to 6,000 characters, Commission’s list of Corporate Officials. DEPARTMENT OF ENERGY without prior registration, using the Any person desiring to intervene or to eComment system at https:// protest this filing must file in Federal Energy Regulatory ferconline.ferc.gov/ accordance with Rules 211 and 214 of Commission QuickComment.aspx. You must include the Commission’s Rules of Practice and your name and contact information at [Project No. 3063–021] Procedure (18 CFR 385.211, 385.214). the end of your comments. For Protests will be considered by the Blackstone Hydro Associates; Notice assistance, please contact FERC Online Commission in determining the of Availability of Environmental Support. In lieu of electronic filing, you appropriate action to be taken, but will Assessment may submit a paper copy. Submissions not serve to make protestants parties to sent via the U.S. Postal Service must be the proceeding. Any person wishing to In accordance with the National addressed to: Kimberly D. Bose, become a party must file a notice of Environmental Policy Act of 1969 and Secretary, Federal Energy Regulatory intervention or motion to intervene, as the Federal Energy Regulatory Commission, 888 First Street NE, Room appropriate. The Respondent’s answer Commission’s (Commission) 1A, Washington, DC 20426. and all interventions, or protests must regulations, 18 CFR part 380, the Office Submissions sent via any other carrier be filed on or before the comment date. of Energy Projects has reviewed the must be addressed to: Kimberly D. Bose, The Respondent’s answer, motions to application for a subsequent license for Secretary, Federal Energy Regulatory intervene, and protests must be served the Central Falls Hydroelectric Project Commission, 12225 Wilkins Avenue, on the Complainant. No. 3063 (Project No. 3063), located on The Commission strongly encourages the Blackstone River in Providence Rockville, Maryland 20852. The first electronic filings of comments, protests County, Rhode Island, and has prepared page of any filing should include docket and interventions in lieu of paper using an Environmental Assessment (EA) for number P–3063–021. the ‘‘eFiling’’ link at http:// the project. For further information, contact John www.ferc.gov. Persons unable to file The EA contains staff’s analysis of the Baummer at (202) 502–6837, or at electronically may mail similar potential environmental impacts of the [email protected]. pleadings to the Federal Energy project and concludes that licensing the Dated: January 14, 2021. Regulatory Commission, 888 First Street project, with appropriate environmental NE, Washington, DC 20426. Hand protective measures, would not Kimberly D. Bose, delivered submissions in docketed constitute a major federal action that Secretary. proceedings should be delivered to would significantly affect the quality of [FR Doc. 2021–01346 Filed 1–21–21; 8:45 am] Health and Human Services, 12225 the human environment. BILLING CODE 6717–01–P Wilkins Avenue, Rockville, Maryland The Commission provides all 20852. interested persons with an opportunity to view and/or print the EA via the 1 16 U.S.C. 824e and 825e (2012). internet through the Commission’s 2 18 CFR 385.206 (2020). Home Page (http://www.ferc.gov) using

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DEPARTMENT OF ENERGY Filed Date: 1/13/21. Docket Numbers: ER21–483–001. Accession Number: 20210113–5158. Applicants: Southwest Power Pool, Federal Energy Regulatory Comments Due: 5 p.m. ET 2/3/21. Inc. Commission Docket Numbers: EG21–73–000. Description: Tariff Amendment: Applicants: Old 300 Solar Center, 3620R1 Kansas City Board of Public Combined Notice of Filings #1 LLC. Utilities NITSA NOA to be effective 9/ Take notice that the Commission Description: Notice of Self- 1/2020. received the following electric corporate Certification of Exempt Wholesale Filed Date: 1/13/21. filings: Generator Status of Old 300 Solar Accession Number: 20210113–5119. Docket Numbers: EC11–119–003. Center, LLC. Comments Due: 5 p.m. ET 2/3/21. Applicants: Gabelli, Mario J., GGCP, Filed Date: 1/13/21. Docket Numbers: ER21–880–000. Inc., GGCP Holdings, LLC, GAMCO Accession Number: 20210113–5176. Applicants: Northern Indiana Public Investors, Inc., Associated Capital Comments Due: 5 p.m. ET 2/3/21. Service Company. Group, Inc. Take notice that the Commission Description: § 205(d) Rate Filing: Description: Request for received the following electric rate Filing of an Amended CIAC Agreement Reauthorization and Extension of filings: to be effective 1/5/2021. Blanket Authorizations Under Section Docket Numbers: ER10–1818–025; Filed Date: 1/13/21. 203 of the Federal Power Act and ER10–1817–022; ER10–1819–029 ER10– Accession Number: 20210113–5133. Request for Expedited Consideration of 1820–032. Comments Due: 5 p.m. ET 2/3/21. Mario J. Gabelli, et al. Applicants: Public Service Company Docket Numbers: ER21–881–000. Filed Date: 1/13/21. of Colorado, Northern States Power Applicants: Southern California Accession Number: 20210113–5165. Company, a Minnesota corporation, Edison Company. Comments Due: 5 p.m. ET 2/3/21. Northern States Power Company, a Description: Tariff Cancellation: Docket Numbers: EC21–43–000. Wisconsin corporation, Southwestern Notice of Termination City of Corona Applicants: Indiana Crossroads Wind Public Service Company. IFA & DSA SA Nos. 1077–1078 to be Farm LLC, Indiana Crossroads Wind Description: Notice of Change in effective 1/16/2021. Generation LLC. Status of Public Service Company of Filed Date: 1/14/21. Description: Joint Application for Colorado, et al. Accession Number: 20210114–5045. Authorization Under Section 203 of the Filed Date: 1/13/21. Comments Due: 5 p.m. ET 2/4/21. Federal Power Act of Indiana Accession Number: 20210113–5166. Crossroads Wind Farm LLC, et al. Docket Numbers: ER21–882–000. Filed Date: 1/13/21. Comments Due: 5 p.m. ET 2/3/21. Applicants: Outlaw Wind Project, Accession Number: 20210113–5140. Docket Numbers: ER15–1429–015. LLC. Comments Due: 5 p.m. ET 2/3/21. Applicants: Versant Power. Description: Tariff Cancellation: Docket Numbers: EC21–44–000. Description: Compliance filing: Joint Cancelling section 10 to be effective 1/ Applicants: Wheelabrator Shasta Offer of Settlement—ER15–1429 15/2021. Energy Company Inc. (Corrected TOFC) to be effective N/A. Filed Date: 1/14/21. Description: Application for Filed Date: 1/14/21. Accession Number: 20210114–5063. Authorization Under Section 203 of the Accession Number: 20210114–5016. Comments Due: 5 p.m. ET 2/4/21. Federal Power Act of Wheelabrator Comments Due: 5 p.m. ET 2/4/21. Take notice that the Commission Shasta Energy Company Inc. Docket Numbers: ER20–1610–002. received the following electric securities Filed Date: 1/13/21. Applicants: Lone Tree Wind, LLC. filings: Accession Number: 20210113–5168. Description: Notice of Non-Material Docket Numbers: ES21–25–000; Comments Due: 5 p.m. ET 2/3/21. Change in Status of Lone Tree Wind, ES21–26–000. Take notice that the Commission LLC. Applicants: Dominion Energy South received the following exempt Filed Date: 1/13/21. Carolina, Inc., South Carolina wholesale generator filings: Accession Number: 20210113–5162. Generating Company, Inc. Docket Numbers: EG21–70–000. Comments Due: 5 p.m. ET 2/3/21. Description: Application under Applicants: Western Trail Wind, LLC. Docket Numbers: ER21–293–002. Section 204 of the Federal Power Act for Description: Notice of Self- Applicants: Horizon West Authorization to Issue Securities for Certification of Exempt Wholesale Transmission, LLC. Dominion Energy South Carolina, Inc. et Generator Status of Western Trail Wind, Description: Compliance filing: al. LLC. Horizon West Transmission, LLC Filed Date: 1/14/21. Filed Date: 1/13/21. December 31 Letter Order Compliance Accession Number: 20210114–5118. Accession Number: 20210113–5155. Comments Due: 5 p.m. ET 2/3/21. Filing to be effective 1/1/2021. Comments Due: 5 p.m. ET 2/4/21. Filed Date: 1/14/21. The filings are accessible in the Docket Numbers: EG21–71–000. Accession Number: 20210114–5095. Applicants: Helena Wind, LLC. Commission’s eLibrary system (https:// Description: Notice of Self- Comments Due: 5 p.m. ET 2/4/21. elibrary.ferc.gov/idmws/search/ Certification of Exempt Wholesale Docket Numbers: ER21–470–001. fercgensearch.asp) by querying the Generator Status of Helena Wind, LLC. Applicants: Southwest Power Pool, docket number. Filed Date: 1/13/21. Inc. Any person desiring to intervene or Accession Number: 20210113–5156. Description: Tariff Amendment: 3675 protest in any of the above proceedings Comments Due: 5 p.m. ET 2/3/21. Doniphan Electric Cooperative Assn, must file in accordance with Rules 211 Docket Numbers: EG21–72–000. Inc. NITSA NOA to be effective 9/1/ and 214 of the Commission’s Applicants: Sparta Solar, LLC. 2020. Regulations (18 CFR 385.211 and Description: Notice of Self- Filed Date: 1/14/21. 385.214) on or before 5:00 p.m. Eastern Certification of Exempt Wholesale Accession Number: 20210114–5051. time on the specified comment date. Generator Status of Sparta Solar, LLC. Comments Due: 5 p.m. ET 2/4/21. Protests may be considered, but

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intervention is necessary to become a last three digits in the docket number protestor states it also seeks to be an party to the proceeding. field to access the document. At this intervenor. eFiling is encouraged. More detailed time, the Commission has suspended Interventions information relating to filing access to the Commission’s Public requirements, interventions, protests, Reference Room, due to the Any person has the option to file a service, and qualifying facilities filings proclamation declaring a National motion to intervene in this proceeding. can be found at: http://www.ferc.gov/ Emergency concerning the Novel Only intervenors have the right to docs-filing/efiling/filing-req.pdf. For Coronavirus Disease (COVID–19), issued request rehearing of Commission orders other information, call (866) 208–3676 by the President on March 13, 2020. For issued in this proceeding and to (toll free). For TTY, call (202) 502–8659. assistance, contact the Federal Energy subsequently challenge the Dated: January 15, 2021. Regulatory Commission at Commission’s orders in the U.S. Circuit Kimberly D. Bose, [email protected] or call Courts of Appeal. Secretary. toll-free, (886) 208–3676 or TYY, (202) To intervene, you must submit a [FR Doc. 2021–01349 Filed 1–21–21; 8:45 am] 502–8659. motion to intervene to the Commission BILLING CODE 6717–01–P Any questions concerning this in accordance with Rule 214 of the application should be directed to Dave Commission’s Rules of Practice and Hammel, Director, Commercial & Procedure 5 and the regulations under DEPARTMENT OF ENERGY Regulatory Law, (832) 320–5861, dave_ the NGA 6 by the intervention deadline [email protected], Columbia Gas for the project, which is March 15, 2021. Federal Energy Regulatory Transmission, LLC, 700 Louisiana As described further in Rule 214, your Commission Street, Suite 700, Houston, TX 77002– motion to intervene must state, to the [Docket No. CP21–23–000] 2700. extent known, your position regarding the proceeding, as well as your interest Public Participation Columbia Gas Transmission, LLC.; in the proceeding. For an individual, Notice of Request Under Blanket There are three ways to become this could include your status as a Authorization and Establishing involved in the Commission’s review of landowner, ratepayer, resident of an Intervention and Protest Deadline this project: You can file a protest to the impacted community, or recreationist. project, you can file a motion to You do not need to have property Take notice that on January 5, 2021, directly impacted by the project in order Columbia Gas Transmission, LLC, 700 intervene in the proceeding, and you can file comments on the project. There to intervene. For more information Louisiana Street, Suite 700, Houston, about motions to intervene, refer to the TX 77002–2700 filed in the above is no fee or cost for filing protests, motions to intervene, or comments. The FERC website at https://www.ferc.gov/ referenced docket a prior notice resources/guides/how-to/intervene.asp. pursuant to Section 157.205 and deadline for filing protests, motions to All timely, unopposed motions to 157.216 of the Federal Energy intervene, and comments is 5:00 p.m. intervene are automatically granted by Regulatory Commission’s regulations Eastern Time on March 15, 2021. How operation of Rule 214(c)(1). Motions to under the Natural Gas Act, requesting to file protests, motions to intervene, intervene that are filed after the authorization to abandon five injection/ and comments is explained below. intervention deadline are untimely and withdrawal wells and associated Protests may be denied. Any late-filed motion to pipelines and appurtenances, located in intervene must show good cause for its Coco B and Coco C Storage Fields in Pursuant to section 157.205 of the being late and must explain why the Kanawha County, West Virginia (2021 Commission’s regulations under the 2 3 time limitation should be waived and Coco B and Coco C Wells Abandonment NGA, any person or the Commission’s provide justification by reference to Project or Project). Columbia proposes staff may file a protest to the request. If factors set forth in Rule 214(d) of the to abandon these facilities under no protest is filed within the time Commission’s Rules and Regulations. A authorities granted by its blanket allowed or if a protest is filed and then person obtaining party status will be certificate issued in Docket No. CP83– withdrawn within 30 days after the placed on the service list maintained by 76–000.1 The proposed abandonments allowed time for filing a protest, the the Secretary of the Commission and will have no impact on Columbia’s proposed activity shall be deemed to be will receive copies (paper or electronic) existing customers or affect Columbia’s authorized effective the day after the of all documents filed by the applicant existing storage operations. The time allowed for protest. If a protest is and by all other parties. estimated cost for the Project is filed and not withdrawn within 30 days approximately $2.8 million, all as more after the time allowed for filing a Comments fully set forth in the request which is on protest, the instant request for Any person wishing to comment on file with the Commission and open to authorization will be considered by the the project may do so. The Commission public inspection. Commission. considers all comments received about In addition to publishing the full text Protests must comply with the the project in determining the of this document in the Federal requirements specified in section appropriate action to be taken. To Register, the Commission provides all 157.205(e) of the Commission’s ensure that your comments are timely interested persons an opportunity to regulations,4 and must be submitted by and properly recorded, please submit view and/or print the contents of this the protest deadline, which is March 15, your comments on or before March 15, document via the internet through the 2021. A protest may also serve as a 2021. The filing of a comment alone will Commission’s Home Page (http:// motion to intervene so long as the not serve to make the filer a party to the ferc.gov) using the ‘‘eLibrary’’ link. proceeding. To become a party, you Enter the docket number excluding the 2 18 CFR 157.205. must intervene in the proceeding. 3 Persons include individuals, organizations, 1 Columbia Gas Transmission Corporation businesses, municipalities, and other entities. 18 (predecessor to Columbia Gas Transmission, LLC), CFR 385.102(d). 5 18 CFR 385.214. 22 FERC 62,029 (1983). 4 18 CFR 157.205(e). 6 18 CFR 157.10.

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How To File Protests, Interventions, and In addition, the Commission offers a ENVIRONMENTAL PROTECTION Comments free service called eSubscription which AGENCY There are two ways to submit allows you to keep track of all formal [ER–FRL–9054–9] protests, motions to intervene, and issuances and submittals in specific comments. In both instances, please dockets. This can reduce the amount of Environmental Impact Statements; reference the Project docket number time you spend researching proceedings Notice of Availability CP21–23–000 in your submission. by automatically providing you with Responsible Agency: Office of Federal (1) You may file your protest, motion notification of these filings, document Activities, General Information 202– to intervene, and comments by using the summaries, and direct links to the 564–5632 or https://www.epa.gov/nepa. Commission’s eFiling feature, which is documents. For more information and to Weekly receipt of Environmental Impact located on the Commission’s website register, go to www.ferc.gov/docs-filing/ (www.ferc.gov) under the link to Statements (EIS) esubscription.asp. Filed January 11, 2021 10 a.m. EST Documents and Filings. New eFiling Dated: January 14, 2021. Through January 14, 2021 10 a.m. EST users must first create an account by Pursuant to 40 CFR 1506.9. clicking on ‘‘eRegister.’’ You will be Kimberly D. Bose, asked to select the type of filing you are Secretary. Notice Section 309(a) of the Clean Air making; first select General’’ and then [FR Doc. 2021–01347 Filed 1–21–21; 8:45 am] Act requires that EPA make public its select ‘‘Protest’’, ‘‘Intervention’’, or BILLING CODE 6717–01–P comments on EISs issued by other ‘‘Comment on a Filing’’; or 7 Federal agencies. EPA’s comment (2) You can file a paper copy of your letters on EISs are available at: https:// submission by mailing it to the address DEPARTMENT OF ENERGY cdxnodengn.epa.gov/cdx-enepa- below.8 Your submission must reference public/action/eis/search. the Project docket number CP21–23– Federal Energy Regulatory EIS No. 20210006, Final Supplement, 000. Commission NRCS, MO, East Locust Creek Kimberly D. Bose, Secretary, Federal Watershed Revised Plan, Review Energy Regulatory Commission, 888 Notice of Effectiveness of Exempt Period Ends: 02/22/2021, Contact: First Street NE, Washington, DC 20426. Wholesale Generator and Foreign Chris Hamilton 573–876–0901. The Commission encourages Utilty Company Status EIS No. 20210007, Draft, USFS, DC, 36 electronic filing of submissions (option HDSI, LLC ...... EG21–2–000 CFR 228, Subpart A, Locatable 1 above) and has eFiling staff available Wapello Solar LLC ...... EG21–3–000 Minerals, Comment Period Ends: 03/ to assist you at (202) 502–8258 or Upton County 2 Solar ...... EG21–5–000 22/2021, Contact: Michael Fracasso [email protected]. Harts Mill TE Holdings LLC EG21–6–000 303–241–3330. Protests and motions to intervene Henrietta D Energy Storage EG21–7–000 EIS No. 20210008, Final, BLM, CA, must be served on the applicant either LLC. Crimson Solar Project Final by mail or email (with a link to the Orange County Energy Stor- EG21–8–000 Environmental Impact Statement and document) at: dave_hammel@ age 2 LLC. Proposed Land Use Amendment to tcenergy.com, 700 Louisiana Street, Orange County Energy Stor- EG21–9–000 the California Desert Conservation Suite 700, Houston, TX 77002–2700. age 3 LLC. Area Plan, Review Period Ends: 02/22/ Any subsequent submissions by an Flat Ridge 3 Wind Energy, EG21–10–000 2021, Contact: Miriam Liberatore intervenor must be served on the LLC. 541–618–2200. applicant and all other parties to the Nutmeg Solar, LLC ...... EG21–11–000 EIS No. 20210009, Final, FTA, PA, King proceeding. Contact information for BT Cooke Solar, LLC ...... EG21–12–000 of Prussia Rail Extension Project, parties can be downloaded from the Rancho Seco Solar, LLC ...... EG21–14–000 Contact: Tim Lidiak 215–656–7084. service list at the eService link on FERC BT Kellam Solar, LLC ...... EG21–15–000 Under 23 U.S.C. 139(n)(2), FTA has Online. Todd Solar LLC ...... EG21–16–000 issued a single FEIS and ROD. Groton Station Fuel Cell, EG21–17–000 Therefore, the 30-day wait/review Tracking the Proceeding LLC. period under NEPA does not apply to Throughout the proceeding, Sigurd Solar LLC ...... EG21–19–000 this action. Conrad (Hawarden) Ltd ...... FC21–1–000 additional information about the project EIS No. 20210010, Draft, FRA, MD, Draft will be available from the Commission’s Take notice that during the month of Environmental Impact Statement and Office of External Affairs, at (866) 208– December 2020, the status of the above- Draft Section 4(f) Evaluation FERC, or on the FERC website at captioned entities as Exempt Wholesale Baltimore-Washington www.ferc.gov using the ‘‘eLibrary’’ link Generators or Foreign Utility Companies Superconducting MAGLEV Project, as described above. The eLibrary link became effective by operation of the Comment Period Ends: 04/22/2021, also provides access to the texts of all Commission’s regulations. 18 CFR Contact: Brandon Bratcher 202–493– formal documents issued by the 366.7(a) (2020). 0844. Commission, such as orders, notices, Amended Notice and rulemakings. Dated: January 14, 2021. Kimberly D. Bose, EIS No. 20200215, Draft, USFS, OR, 7 Additionally, you may file your comments Secretary. Stella Restoration Project, Comment electronically by using the eComment feature, Period Ends: 01/12/2021, Contact: which is located on the Commission’s website at [FR Doc. 2021–01351 Filed 1–21–21; 8:45 am] Elizabeth Bly 541–560–3465. www.ferc.gov under the link to Documents and BILLING CODE 6717–01–P Filings. Using eComment is an easy method for Revision to FR Notice Published 10/ interested persons to submit brief, text-only 30/2020; Correction to Comment Period comments on a project. Due Date from December 14, 2020 to 8 Hand-delivered submissions in docketed January 12, 2021. proceedings should be delivered to Health and Human Services, 12225 Wilkins Avenue, Rockville, EIS No. 20200238, Draft, USFS, OR, Maryland 20852. VOID—Stella Restoration Project,

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Comment Period Ends: 01/12/2021, very low power operations. Among the licensed services. More specifically, the Contact: Elizabeth Bly 541–560–3465. comments filed, unlicensed proponents Commission invites comment on Revision to FR Notice Published 11/ requested that the Commission modify whether to permit 6 GHz U–NII client 27/2020; Retracted due to erroneous its low-power indoor device rules to devices to directly communicate when filing. permit client-to-client device they are under the control of or have communications, which they assert received an enabling signal from a low- Dated: January 15, 2021. would enable additional types of power indoor access point. As an initial Cindy S. Barger, innovative unlicensed operations in the matter, commenters should explain how Director, NEPA Compliance Division, Office band. The Fixed Wireless they define an enabling signal, what of Federal Activities. Communications Coalition opposes any characteristics it must have, how it is [FR Doc. 2021–01365 Filed 1–21–21; 8:45 am] such revisions and asserts that there is similar or different from signals, such as BILLING CODE 6560–50–P no record support for permitting client- beacons, that access points already use to-client communications in this band. to connect with client devices, and the 2. In the 6 GHz Order, the degree to which an enabling signal FEDERAL COMMUNICATIONS Commission prohibited unlicensed would tether a client device not under COMMISSION client devices from acting as ‘‘mobile the direct control of an access point to hotspots’’ because ‘‘[p]ermitting a client that access point. Commenters should [ET Docket No. 18–295; GN Docket No. 17– device operating under the control of an 183; DA 21–7; FRS 17404] also provide information on the types of access point to authorize the operation applications that direct client-to-client Office of Engineering & Technology of additional client devices could communications would enable that Seeks Additional Information potentially increase the distance cannot be accomplished by Regarding Client-to-Client Device between these additional client devices communications through an access Communications in the 6 GHz Band and the access point and increase the point. In addition, commenters potential for harmful interference to advocating for rule changes should AGENCY: Federal Communications fixed service receivers or electronic address whether direct client-to-client Commission. news gathering operations.’’ To avoid communications should be under the ACTION: Notice. this situation, the Commission’s rules current power limits or restricted to prohibit 6 GHz U–NII client devices lower power limits to reduce the SUMMARY: In this document, the Office from directly communicating with one potential for harmful interference to of Engineering and Technology seeks another. The Commission did not, incumbent operations. In this additional information to supplement however, examine whether a more connection, the Commission notes that the record on whether the Commission limited approach to indoor client-to- client devices under the control of a should permit direct communications client communications within the ambit low-power indoor access point are between unlicensed 6 GHz band client of the 6 GHz Notice should be permitted to operate up to 24 dBm EIRP devices. permissible—e.g., when a client is not over 320-megahertz channels (or ¥1 DATES: Comments are due on or before acting as a mobile hotspot. Accordingly, dBm/MHz). February 22, 2021, and reply comments Apple, Broadcom et al. suggest that 4. As the 6 GHz Order explained, the are due on or before March 23, 2021. client devices be permitted to directly requirement that 6 GHz U–NII client ADDRESSES: Federal Communications communicate with each other if they can decode an enabling signal devices operate under the control of Commission, 45 L Street NE, either a standard-power or low-power Washington, DC 20554. transmitted by a low-power indoor access point within the last four indoor access point is designed to FOR FURTHER INFORMATION CONTACT: seconds. They suggest that the prevent client devices from causing Nicholas Oros, Office of Engineering Commission could further constrain harmful interference by limiting their and Technology, 202–418–0636, client-to-client communications by operation either to outdoors in areas [email protected]. requiring that the enabling signal be where the AFC system has determined SUPPLEMENTARY INFORMATION: This is a received at a signal strength of at least that interference will not occur or to summary of the Commission’s ¥99 dBm/MHz. According to Apple, indoor locations where other factors document, Public Notice, DA 21–7, ET Broadcom et al., as a client device could such as building entry loss prevent Docket No. 18–295, GN Docket No. 17– communicate at this signal level with a harmful interference. In particular, 183, released January 11, 2021. The full low-power indoor access point in a operations under the control of a low- text of this document is available for traditional access-point-to-client power indoor access point is aimed at public inspection and can be topology under the existing rules, this restricting operation of the client downloaded at: https://www.fcc.gov/ would ensure each individual client devices to indoor locations. It may be document/oet-seeks-info-6-ghz-u-nii- participating in client-to-client possible for a client device to receive an client-client-device-communications or communications is safely inside the area enabling signal from an access point by using the search function for ET where a client device is authorized to even when the enabling signal is too Docket No. 18–295 on the Commission’s communicate with an access point weak to enable the client device to ECFS web page at www.fcc.gov/ecfs. 3. The Commission takes this conduct communications with the opportunity to invite interested parties access point. In such situations, the Synopsis to supplement the record, for the weak received signal level makes it 1. In the 6 GHz Further Notice, the Commission’s consideration, on more likely that the client device could Commission sought comment on whether and under what circumstances be outdoors. By requiring the enabling additional actions that it should take to client devices could be permitted to signal have a specific signal strength, further expand unlicensed operations in directly communicate with each other this problem could be potentially the 6 GHz band through revisions to the in a limited manner consistent with the avoided. If the Commission were to existing rules for standard-power or rationale underlying the Commission’s adopt rules permitting client-to-client low-power indoor operations or by decisions in the 6 GHz Order that were communications, should it require the authorizing a third type of operation, targeted at protecting incumbent enabling signal from the low-power

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indoor access point to be received by standard power access point or a low- displays a currently valid Office of the client device with a particular signal power indoor access point or whether, Management and Budget (OMB) control level? Apple, Broadcom et al. suggested and which, rules would need to be number. No person shall be subject to ¥99 dBm/MHz: Is this level modified. Commenters should provide any penalty for failing to comply with appropriate? If not, what signal level detailed analysis of how any client-to- a collection of information subject to the would be appropriate for this purpose? client communication configurations PRA that does not display a valid OMB How can a specific signal level be they prefer would protect incumbent control number. correlated with the current requirement operations from harmful interference. DATES: Written PRA comments should that the client device be under the Finally, commenters should provide any be submitted on or before March 23, control of an access point? For example, other information they believe relevant 2021. If you anticipate that you will be under such an approach, should the to evaluating whether direct client-to- submitting comments but find it enabling signal level be of such a client communications consistent with difficult to do so within the period of strength to effectively require that the the rationale of the Commission in the time allowed by this notice, you should signal levels between the access point 6 GHz Order should be permitted, advise the contact listed below as soon and client device be sufficiently strong including any alternative methods or as possible. to permit bi-directional communications necessary rule changes not directly ADDRESSES: Direct all PRA comments to between the client devices and the noted above. Cathy Williams, FCC, via email to PRA@ access point, thereby ensuring that both Federal Communications Commission. fcc.gov and to [email protected]. client devices are sufficiently close to Ronald T. Repasi, FOR FURTHER INFORMATION CONTACT: For the access point? How frequently should Acting Chief, Office of Engineering and additional information about the a client device be required to receive an Technology. information collection, contact Cathy enabling signal to continue transmitting [FR Doc. 2021–01404 Filed 1–21–21; 8:45 am] Williams at (202) 418–2918. to another client device? BILLING CODE 6712–01–P SUPPLEMENTARY INFORMATION: 5. If permitted, should the client OMB Control No.: 3060–0686. devices be limited to receiving an Title: International Section 214 enabling signal from the same access FEDERAL COMMUNICATIONS Process and Tariff Requirements, 47 point or could client-to-client COMMISSION CFR Sections 63.10, 63.11, 63.13, 63.18, communications be permitted so long as [OMB 3060–0686; FRS 17401] 63.19, 63.21, 63.22, 63.24, 63.25 and each client device receives an enabling 1.1311. signal from any authorized access point? Information Collection Being Reviewed Form No.: International Section 214— Apple, Broadcom et al.’s suggestion by the Federal Communications New Authorization; International would potentially permit two client Commission Under Delegated Section 214 Authorization—Transfer of devices to communicate even if they Authority Control/Assignment; International receive enabling signals from two Section 214—Special Temporary different access points. For example, AGENCY: Federal Communications Authority and International Section client devices in two different buildings Commission. 214—Foreign Carrier Affiliation receiving enabling signals from different ACTION: Notice and request for Notification. low-power indoor access points could comments. Type of Review: Extension of a attempt to communicate with each currently approved collection. other. Would permitting this to occur SUMMARY: As part of its continuing effort Respondents: Business or other for- increase the potential for the client to reduce paperwork burdens, and as profit entities. devices to cause harmful interference to required by the Paperwork Reduction Number of Respondents: 268 licensed services? How would a Act of 1995 (PRA), the Federal respondents; 455 responses. requirement for both devices to receive Communications Commission (FCC or Estimated Time per Response: 1 an enabling signal from the same access Commission) invites the general public hour–20 hours. point be implemented? Or should other and other Federal agencies to take this Frequency of Response: On occasion, configurations be permitted? For opportunity to comment on the annual and quarterly reporting example, could a client device following information collections. requirements, third party disclosure controlled by a standard power access Comments are requested concerning: requirement, and recordkeeping point be permitted to communicate with Whether the proposed collection of requirement. a client device controlled by a low- information is necessary for the proper Obligation to Respond: Required to power indoor access point? Could performance of the functions of the obtain or retain benefits. The statutory client-to-client communications be Commission, including whether the authority for Part 1 of this information permitted between devices when both information shall have practical utility; collection is contained in 47 U.S.C 151, clients are controlled by a standard the accuracy of the Commission’s 154(i), 154(j), 155, 225, 303(r), 309, and power access point? If so, are any burden estimate; ways to enhance the 325(e). The statutory authority for Part changes needed to the AFC systems? quality, utility, and clarity of the 63 of this information collection is Must the enabling signal be received on information collected; ways to minimize contained in Sections 1, 4(i), 4(j), 10, 11, the same channel for each device under the burden of the collection of 201–205, 214, 218, 403, and 651 of the any of the scenarios contemplated? information on the respondents, Communications Act of 1934, as Under any envisioned client-to-client including the use of automated amended, and 47 U.S.C. 151, 154(i), communication scenario, commenters collection techniques or other forms of 154(j), 160, 201–205, 214, 218, 403, and should provide detailed descriptions of information technology; and ways to 571. The statutory authority for this how such communications can be further reduce the information information collection is also contained enabled including how such collection burden on small business in the Cable Landing License Act, communications fit under the current concerns with fewer than 25 employees. Executive Order 10530 and the Coastal rules that limit client devices to The FCC may not conduct or sponsor Zone Management Act, 16 U.S.C. 1456. operating only under the control of a a collection of information unless it Total Annual Burden: 1,677 hours.

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Annual Cost Burden: $419,390. FEDERAL DEPOSIT INSURANCE Summary Agenda Privacy Act Impact Assessment: No CORPORATION Disposition of Minutes of a Board of impact(s). Directors’ Meeting Previously Nature and Extent of Confidentiality: Sunshine Act Meeting In general, there is no need for Distributed. confidentiality. TIME AND DATE: 10:22 a.m. on Tuesday, Memorandum and resolution re: Final Needs and Uses: This collection will January 19, 2021. Rule on Role of Supervisory Guidance. Memorandum and resolution re: be submitted to the Office of PLACE: The meeting was held via video Notice of Proposed Rule on Rescission Management and Budget (OMB) as an conference on the internet. extension after this 60-day comment and Removal of Transferred OTS STATUS: Closed. period in order to obtain the full three- Regulations, Definitions for Regulations year clearance. MATTERS TO BE CONSIDERED: In calling Affecting All State Savings Associations The information is used by the the meeting, the Board determined, on (Part 390 Subpart Q). Federal Communications Commission motion of Director Martin J. Gruenberg, Memorandum and resolution re: (Commission) staff in carrying out its seconded by Director Kathleen L. Notice of Proposed Rulemaking on duties under the Communications Act. Kraninger (Director, Consumer Removal of Transferred OTS The information collections pertaining Financial Protection Bureau), and Regulations Regarding Securities to Part 1 of the rules are necessary to concurred in by Director Blake Paulson Offerings of State Savings Associations, determine whether the Commission (Acting Comptroller of the Currency), Rescission of Statement of Policy on the should grant a license for proposed and Chairman Jelena McWilliams, that Use of Offering Circulars, Proposed submarine cables landing in the United Corporation business required its Rulemaking Regarding Securities States. Pursuant to Executive Order No. consideration of the matters which were Offerings by State Nonmember Banks 10530, the Commission has been to be the subject of this meeting on less and State Savings Associations, and delegated the President’s authority than seven days’ notice to the public; Other, Technical Amendments. under the Cable Landing License Act to that no earlier notice of the meeting was Report of actions taken pursuant to grant cable landing licenses, provided practicable; that the public interest did authority delegated by the Board of that the Commission obtains the not require consideration of the matters Directors. in a meeting open to public observation; approval from the State Department and Discussion Agenda seeks advice from other government and that the matters could be agencies as appropriate. The considered in a closed meeting by Memorandum and resolution re: information collections pertaining to authority of subsections (c)(2), (c)(4), Revisions to the FDIC’s Guidelines for Part 63 are necessary largely to (c)(6), (c)(8), (c)(9)(A)(ii), and (c)(9)(B) of Appeals of Material Supervisory determine the qualifications of the ‘‘Government in the Sunshine Act’’ Determinations. applicants to provide common carrier (5 U.S.C. 552b(c)(2), (c)(4), (c)(6), (c)(8), In calling the meeting, the Board international telecommunications (c)(9)(A)(ii), and (c)(9)(B). determined, on motion of Director service, including applicants that are CONTACT PERSON FOR MORE INFORMATION: Martin J. Gruenberg, seconded by affiliated with foreign carriers, and to Requests for further information Director Kathleen Kraninger (Director, determine whether and under what concerning the meeting may be directed Consumer Financial Protection Bureau), conditions the authorizations are in the to Ms. Debra A. Decker, Deputy concurred in by Director Blake Paulson public interest, convenience, and Executive Secretary of the Corporation, (Acting Comptroller of the Currency), necessity. at 202–898–8748. and Chairman Jelena McWilliams, that Corporation business required its If the collections are not conducted or Federal Deposit Insurance Corporation. are conducted less frequently, consideration of the matters on less than James P. Sheesley, applicants will not be able to obtain the seven days’ notice to the public; and authorizations necessary to provide Assistant Executive Secretary. that no earlier notice of the meeting telecommunications services, and the [FR Doc. 2021–01545 Filed 1–19–21; 4:15 pm] than that previously provided on Commission will be unable to carry out BILLING CODE 6714–01–P January 15, 2021, was practicable. its mandate under the Communications Dated this the 19th day of January, 2021. Act of 1934 and the Cable Landing FEDERAL DEPOSIT INSURANCE Federal Deposit Insurance Corporation. License Act. In addition, without the CORPORATION James P. Sheesley, information collections, the United Assistant Executive Secretary. States would jeopardize its ability to Sunshine Act Meeting; Notice of [FR Doc. 2021–01544 Filed 1–19–21; 4:15 pm] fulfill the U.S. obligations as negotiated Meeting To Be Held With Less Than BILLING CODE 6714–01–P under the World Trade Organization Seven Days Advance Notice (WTO) Basic Telecom Agreement because these collections are imperative TIME AND DATE: 10:00 a.m. on Tuesday, FEDERAL ELECTION COMMISSION to detecting and deterring January 19, 2021. anticompetitive conduct. They are also PLACE: The meeting was held via video [NOTICE 2021—01] necessary to preserve the Executive conference on the internet and was Branch agencies’ and the Commission’s webcast to the public. Filing Dates for the Louisiana Special ability to review foreign investments for Election in the 2nd Congressional MATTERS TO BE CONSIDERED: national security, law enforcement, Pursuant to District Special Election foreign policy, and trade concerns. the provisions of the Government in the Sunshine Act, notice is hereby given AGENCY: Federal Election Commission. Federal Communications Commission. that the Federal Deposit Insurance ACTION: Notice of filing dates for special Marlene Dortch, Corporation’s Board of Directors met in election. Secretary, Office of the Secretary. open session at 10:00 a.m. on Tuesday, [FR Doc. 2021–01367 Filed 1–21–21; 8:45 am] January 19, 2021, to consider the SUMMARY: Louisiana has scheduled a BILLING CODE 6712–01–P following matters: Special General Election on March 20,

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2021, to fill its U.S. House of Special General Election shall file a 12- Additional disclosure information for Representatives seat in the 2nd day Pre-General Report on March 8, the Louisiana special elections may be Congressional District being vacated by 2021. (See charts below for the closing found on the FEC website at https:// Representative Cedric L. Richmond. date for each report.) www.fec.gov/help-candidates-and- Under Louisiana law, a majority winner If only one election is held, all committees/dates-and-deadlines/. in a Special General Election is declared principal campaign committees of elected. Should no candidate achieve a Disclosure of Lobbyist Bundling candidates in the Special General Activity majority vote, a Special Runoff Election Election shall file a 12-day Pre-General will be held on April 24, 2021, between Report on March 8, 2021; and a 30-day Principal campaign committees, party the top two vote-getters. Political Post-General Report on April 19, 2021. committees and leadership PACs that committees participating in the (See charts below for the closing date for are otherwise required to file reports in Louisiana special elections are required each report.) connection with the special election to file pre- and post-election reports. Note that these reports are in addition must simultaneously file FEC Form 3L Filing deadlines for these reports are to the campaign committee’s regular if they receive two or more bundled affected by whether one or two elections quarterly filings. (See charts below for contributions from lobbyists/registrants are held. the closing date for each report.) or lobbyist/registrant PACs that FOR FURTHER INFORMATION CONTACT: Ms. aggregate in excess of the lobbyist Elizabeth S. Kurland, Information Unauthorized Committees (PACs and bundling disclosure threshold during Division, 1050 First Street NE, Party Committees) the special election reporting periods. Washington, DC 20463; Telephone: Political committees not filing (See charts below for closing date of (202) 694–1100; Toll Free (800) 424– monthly in 2021 are subject to special each period.) 11 CFR 104.22(a)(5)(v), (b), 9530. election reporting if they make 110.17(e)(2), (f). SUPPLEMENTARY INFORMATION: previously undisclosed contributions or The lobbyist bundling disclosure expenditures in connection with the threshold for calendar year 2020 was Principal Campaign Committees Louisiana Special General and/or $19,000. This threshold amount may If two elections are held, all principal Special Runoff Elections by the close of change in 2021 based upon the annual campaign committees of candidates who books for the applicable report(s). (See cost of living adjustment (COLA). As participate in both the Louisiana Special charts below for the closing date for soon as the adjusted threshold amount General and Special Runoff Elections each report.) is available, the Commission will shall file a 12-day Pre-General Report on Committees filing monthly that make publish it in the Federal Register and March 8, 2021; a 12-day Pre-Runoff contributions or expenditures in post it on its website. 11 CFR 104.22(g) Report on April 12, 2021; and a 30-day connection with the Louisiana Special and 110.17(e)(2). For more information Post-Runoff Report on May 24, 2021. General and/or Special Runoff Elections on these requirements, see Federal Principal campaign committees of will continue to file according to the Register Notice 2009–03, 74 FR 7285 candidates who participate only in the monthly reporting schedule. (February 17, 2009).

CALENDAR OF REPORTING DATES FOR LOUISIANA SPECIAL ELECTION(S)

Reg./cert. & Report Close of books 1 overnight mailing Filing deadline deadline

IF ONLY ONE ELECTION IS HELD, CAMPAIGN COMMITTEES INVOLVED IN THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Post-General ...... 04/09/2021 04/19/2021 04/19/2021 April Quarterly ...... --- WAIVED --- July Quarterly ...... 06/30/2021 07/15/2021 07/15/2021

IF ONLY ONE ELECTION IS HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Post-General ...... 04/09/2021 04/19/2021 04/19/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, CAMPAIGN COMMITTEES INVOLVED IN ONLY THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 April Quarterly ...... 03/31/2021 04/15/2021 04/15/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN ONLY THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, CAMPAIGN COMMITTEES INVOLVED IN BOTH THE SPECIAL GENERAL (03/20/2021) AND SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021

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CALENDAR OF REPORTING DATES FOR LOUISIANA SPECIAL ELECTION(S)—Continued

Reg./cert. & Report Close of books 1 overnight mailing Filing deadline deadline

April Quarterly ...... --- WAIVED --- Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 July Quarterly ...... 06/30/2021 07/15/2021 07/15/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN BOTH THE SPECIAL GENERAL (03/20/2021) AND SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021 Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN ONLY THE SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021 Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021 1 The reporting period always begins the day after the closing date of the last report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred before the committee registered as a political committee up through the close of books for the first report due. 2 Notice that this filing deadline falls on a weekend or federal holiday. Filing deadlines are not extended when they fall on nonworking days. Accordingly, reports filed by methods other than registered, certified or overnight mail must be received by close of business on the last business day before the deadline.

Dated: January 15, 2021. FEDERAL ELECTION COMMISSION participate in both the Louisiana Special On behalf of the Commission, General and Special Runoff Elections [NOTICE 2021–02] Ellen L. Weintraub, shall file a 12-day Pre-General Report on March 8, 2021; a 12-day Pre-Runoff Commissioner, Federal Election Commission. Filing Dates for the Louisiana Special Report on April 12, 2021; and a 30-day [FR Doc. 2021–01395 Filed 1–21–21; 8:45 am] Election in the 5th Congressional District Special Election Post-Runoff Report on May 24, 2021. BILLING CODE 6715–01–P Principal campaign committees of AGENCY: Federal Election Commission. candidates who participate only in the ACTION: Notice of filing dates for special Special General Election shall file a 12- FEDERAL ELECTION COMMISSION election. day Pre-General Report on March 8, 2021. (See charts below for the closing Sunshine Act Meeting SUMMARY: Louisiana has scheduled a date for each report.) Special General Election on March 20, If only one election is held, all TIME AND DATE: Tuesday, January 26, 2021, to fill its U.S. House of principal campaign committees of 2021 at 10:00 a.m. and its continuation Representatives seat in the 5th candidates in the Special General at the conclusion of the open meeting Congressional District following the Election shall file a 12-day Pre-General on January 28, 2021. passing of Representative-elect Luke J. Report on March 8, 2021; and a 30-day Letlow. Under Louisiana law, a majority PLACE: 1050 First Street NE, Post-General Report on April 19, 2021. winner in a Special General Election is (See charts below for the closing date for Washington, DC, (This meeting will be declared elected. Should no candidate a virtual meeting). each report.) achieve a majority vote, a Special Note that these reports are in addition STATUS: This meeting will be closed to Runoff Election will be held on April to the campaign committee’s regular the public. 24, 2021, between the top two vote- quarterly filings. (See charts below for getters. Political committees the closing date for each report.) MATTERS TO BE CONSIDERED: Compliance participating in the Louisiana special matters pursuant to 52 U.S.C. 30109. elections are required to file pre- and Unauthorized Committees (PACs and Matters concerning participation in post-election reports. Filing deadlines Party Committees) civil actions or proceedings or for these reports are affected by whether Political committees not filing arbitration. one or two elections are held. monthly in 2021 are subject to special FOR FURTHER INFORMATION CONTACT: Ms. * * * * * election reporting if they make Elizabeth S. Kurland, Information previously undisclosed contributions or CONTACT PERSON FOR MORE INFORMATION: Division, 1050 First Street, NE, expenditures in connection with the Judith Ingram, Press Officer, Telephone: Washington, DC 20463; Telephone: Louisiana Special General and/or (202) 694–1220. (202) 694–1100; Toll Free (800) 424– Special Runoff Elections by the close of 9530. books for the applicable report(s). (See Laura E. Sinram, SUPPLEMENTARY INFORMATION: charts below for the closing date for Acting Secretary and Clerk of the each report.) Commission. Principal Campaign Committees Committees filing monthly that make [FR Doc. 2021–01573 Filed 1–19–21; 4:15 pm] If two elections are held, all principal contributions or expenditures in BILLING CODE 6715–01–P campaign committees of candidates who connection with the Louisiana Special

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General and/or Special Runoff Elections are otherwise required to file reports in The lobbyist bundling disclosure will continue to file according to the connection with the special election threshold for calendar year 2020 was monthly reporting schedule. must simultaneously file FEC Form 3L $19,000. This threshold amount may Additional disclosure information for if they receive two or more bundled change in 2021 based upon the annual the Louisiana special elections may be contributions from lobbyists/registrants cost of living adjustment (COLA). As found on the FEC website at https:// or lobbyist/registrant PACs that soon as the adjusted threshold amount www.fec.gov/help-candidates-and- aggregate in excess of the lobbyist is available, the Commission will committees/dates-and-deadlines/. bundling disclosure threshold during publish it in the Federal Register and post it on its website. 11 CFR 104.22(g) Disclosure of Lobbyist Bundling the special election reporting periods. and 110.17(e)(2). For more information Activity (See charts below for closing date of each period.) 11 CFR 104.22(a)(5)(v), (b), on these requirements, see Federal Principal campaign committees, party 110.17(e)(2), (f). Register Notice 2009–03, 74 FR 7285 committees and leadership PACs that (February 17, 2009).

CALENDAR OF REPORTING DATES FOR LOUISIANA SPECIAL ELECTION(S)

Reg./cert. & Report Close of books 1 overnight mailing Filing deadline deadline

IF ONLY ONE ELECTION IS HELD, CAMPAIGN COMMITTEES INVOLVED IN THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Post-General ...... 04/09/2021 04/19/2021 04/19/2021 April Quarterly ...... --- WAIVED --- July Quarterly ...... 06/30/2021 07/15/2021 07/15/2021

IF ONLY ONE ELECTION IS HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Post-General ...... 04/09/2021 04/19/2021 04/19/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, CAMPAIGN COMMITTEES INVOLVED IN ONLY THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 April Quarterly ...... 03/31/2021 04/15/2021 04/15/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN ONLY THE SPECIAL GENERAL (03/20/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, CAMPAIGN COMMITTEES INVOLVED IN BOTH THE SPECIAL GENERAL (03/20/2021) AND SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021 April Quarterly ...... --- WAIVED --- Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 July Quarterly ...... 06/30/2021 07/15/2021 07/15/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN BOTH THE SPECIAL GENERAL (03/20/2021) AND SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-General ...... 02/28/2021 03/05/2021 03/08/2021 Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021 Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021

IF TWO ELECTIONS ARE HELD, PACS AND PARTY COMMITTEES NOT FILING MONTHLY INVOLVED IN ONLY THE SPECIAL RUNOFF (04/24/2021) MUST FILE:

Pre-Runoff ...... 04/04/2021 04/09/2021 04/12/2021 Post-Runoff ...... 05/14/2021 05/24/2021 05/24/2021 Mid-Year ...... 06/30/2021 07/31/2021 2 07/31/2021 1 The reporting period always begins the day after the closing date of the last report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred before the committee registered as a political committee up through the close of books for the first report due. 2 Notice that this filing deadline falls on a weekend or federal holiday. Filing deadlines are not extended when they fall on nonworking days. Accordingly, reports filed by methods other than registered, certified or overnight mail must be received by close of business on the last business day before the deadline.

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Dated: January 15, 2021. billion and to require FHFA to adjust FEDERAL RETIREMENT THRIFT On behalf of the Commission. the cap annually to reflect the INVESTMENT BOARD Ellen L. Weintraub, percentage increase in the CPI–U, as Commissioner, Federal Election Commission. published by the DOL.3 For 2020, FHFA Notice of Board Meeting set the CFI asset cap at $1,224,000,000, [FR Doc. 2021–01405 Filed 1–21–21; 8:45 am] DATES: January 26, 2021 at 10:00 a.m. BILLING CODE 6715–01–P which reflected a 2.1 percent increase over 2019, based upon the increase in ADDRESSES: Telephonic. Dial-in (listen the CPI–U between 2019 and 2020.4 only) information: Number: 1–415–527– 5035, Code: 199 601 5134; or via web: FEDERAL HOUSING FINANCE II. The CFI Asset Cap for 2021 https://tspmeet.webex.com/tspmeet/ AGENCY onstage/g.php?MTID=e84524dda563a [No. 2021–N–1] As of January 1, 2021, FHFA has 8355830b6e7b51e26b53. increased the CFI asset cap to FOR FURTHER INFORMATION CONTACT: Notice of Annual Adjustment of the $1,239,000,000, which reflects a 1.2 Kimberly Weaver, Director, Office of Cap on Average Total Assets That percent increase in the unadjusted CPI– External Affairs, (202) 942–1640. Defines Community Financial U from November 2019 to November SUPPLEMENTARY INFORMATION: Institutions 2020. Consistent with the practice of other Federal agencies, FHFA bases the Board Meeting Agenda AGENCY: Federal Housing Finance Agency. annual adjustment to the CFI asset cap Open Session on the percentage increase in the CPI– ACTION: Notice. U from November of the year prior to 1. Approval of the December 21, 2020 SUMMARY: The Federal Housing Finance the preceding calendar year to Board Meeting Minutes Agency (FHFA) has adjusted the cap on November of the preceding calendar 2. Monthly Reports average total assets that is used in year, because the November figures (a) Participant Activity Report determining whether a Federal Home represent the most recent available data (b) Legislative Report Loan Bank (Bank) member qualifies as as of January 1st of the current calendar 3. Quarterly Reports (c) Investment Policy a ‘‘community financial institution’’ year. The new CFI asset cap was (d) Budget Review (CFI) to $1,239,000,000, based on the obtained by applying the percentage annual percentage increase in the (e) Audit Status increase in the CPI–U to the unrounded 4. Internal Audit Update Consumer Price Index for all urban amount for the preceding year and consumers (CPI–U), as published by the 5. Annual Expense Ratio Review rounding to the nearest million, as has 6. Multi-asset Manager Update Department of Labor (DOL). These been FHFA’s practice for all previous changes took effect on January 1, 2021. 7. Recordkeeping Services adjustments. Acquisition (RKSA) Update FOR FURTHER INFORMATION CONTACT: In calculating the CFI asset cap, FHFA James Hedrick, Division of Federal Closed Session Home Loan Bank Regulation, (202) 649– uses CPI–U data that have not been seasonally adjusted (i.e., the data have 8. Information covered under 5 U.S.C. 3319, [email protected]; or R. 552b (c)(9)(B). Winston Sale, Assistant General not been adjusted to remove the Counsel, (202) 649–3081, estimated effect of price changes that Authority: 5 U.S.C. 552b (e)(1). [email protected], (not toll-free normally occur at the same time and in Dated: January 14, 2021. numbers), Federal Housing Finance about the same magnitude every year). Dharmesh Vashee, Agency, Constitution Center, 400 The DOL encourages use of unadjusted Acting General Counsel, Federal Retirement Seventh Street SW, Washington, DC CPI–U data in applying ‘‘escalation’’ Thrift Investment Board. 20219. provisions such as that governing the [FR Doc. 2021–01321 Filed 1–21–21; 8:45 am] SUPPLEMENTARY INFORMATION: CFI asset cap, because the factors that BILLING CODE P are used to seasonally adjust the data I. Statutory and Regulatory Background are amended annually, and seasonally The Federal Home Loan Bank Act adjusted data that are published earlier DEPARTMENT OF DEFENSE (Bank Act) confers upon insured are subject to revision for up to five depository institutions that meet the years following their original release. GENERAL SERVICES statutory definition of a CFI certain Unadjusted data are not routinely ADMINISTRATION advantages over non-CFI insured subject to revision, and previously depository institutions in qualifying for published unadjusted data are only NATIONAL AERONAUTICS AND Bank membership, and in the purposes corrected when significant calculation SPACE ADMINISTRATION for which they may receive long-term errors are discovered. advances and the collateral they may [OMB Control No. 9000–0001; Docket No. 2020–0053; Sequence No. 14] pledge to secure advances.1 Section Andre D. Galeano, 2(10)(A) of the Bank Act and § 1263.1 of Deputy Director, Division of Federal Home Submission for OMB Review; Standard FHFA’s regulations define a CFI as any Loan Bank Regulation, Federal Housing Form 28, Affidavit of Individual Surety Bank member the deposits of which are Finance Agency. insured by the Federal Deposit [FR Doc. 2021–01267 Filed 1–21–21; 8:45 am] AGENCY: Department of Defense (DOD), Insurance Corporation and that has BILLING CODE 8070–01–P General Services Administration (GSA), average total assets below the statutory and National Aeronautics and Space cap.2 The Bank Act was amended in Administration (NASA). 2008 to set the statutory cap at $1 ACTION: Notice. 3 See 12 U.S.C. 1422(10)(B); 12 CFR 1263.1 1 See 12 U.S.C. 1424(a), 1430(a). (defining the term CFI asset cap). SUMMARY: Under the provisions of the 2 See 12 U.S.C. 1422(10)(A); 12 CFR 1263.1. 4 See 85 FR 3680 (Jan. 22, 2020). Paperwork Reduction Act, the

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Regulatory Secretariat Division has for supplies or services (including UNITED STATES AGENCY FOR submitted to the Office of Management construction). It is an elective decision GLOBAL MEDIA and Budget (OMB) a request to review on the part of the offeror or contractor and approve a revision and renewal of to use individual sureties instead of USAGM Performance Review Board a previously approved information other available sources of surety or Members collection requirement regarding the sureties for Government bonds. AGENCY: United States Agency for Standard Form 28, Affidavit of The contracting officer uses the Global Media. Individual Surety. information on the SF 28 to determine ACTION: Notice. DATES: Submit comments on or before the acceptability of individuals February 22, 2021. proposed as sureties. SUMMARY: The United States Agency for ADDRESSES: Written comments and C. Annual Burden Global Media (USAGM) announces the recommendations for this information members of its SES Performance Review collection should be sent within 30 days Respondents: 10. Board (PRB). of publication of this notice to Total Annual Responses: 20. ADDRESSES: USAGM Office of Human www.reginfo.gov/public/do/PRAMain. Resources, 330 Independence Ave SW, Find this particular information Total Burden Hours: 6. Washington, DC 20237 collection by selecting ‘‘Currently under D. Public Comment FOR FURTHER INFORMATION CONTACT: Review—Open for Public Comments’’ or Ellona Fritschie, Business Review by using the search function. A 60-day notice was published in the Additionally, submit a copy to GSA Coordinator, at [email protected] or Federal Register at 85 FR 70151, on (202) 382–7500. through http://www.regulations.gov and November 4, 2020. One comment was SUPPLEMENTARY INFORMATION: In follow the instructions on the site. This received; however, it did not change the accordance with 5 U.S.C. 4314, USAGM website provides the ability to type estimate of the burden. short comments directly into the publishes this notice announcing the comment field or attach a file for Comment: The commenter requested individuals who will serve as members lengthier comments. the FAR Council implement FAR Case of the PRB for a term of one year. The Instructions: All items submitted 2017–003, Individual Sureties, and, PRB is responsible for: (1) Reviewing must cite OMB Control number 9000– once implemented, create the necessary performance appraisals and ratings of 0001, Standard Form 28, Affidavit of reporting requirements that will Senior Executive Service and Senior Individual Surety. Comments received mitigate, if not eliminate, instances Level members; and (2) making generally will be posted without change where individual surety bonds are recommendations on other performance to http://www.regulations.gov, including accepted with worthless assets or with management issues, such as pay any personal and/or business assets that are beyond the control of adjustments, bonuses, and Presidential confidential information provided. To contracting officials. Accordingly, the Rank Awards. The names, position confirm receipt of your comment(s), commenter finds the renewal/revision titles, and appointment types of each please check www.regulations.gov, of the information collection premature member of the PRB are set forth below: approximately two-to-three days after because it is uncertain what types of 1. James Reeves, Chief Information submission to verify posting. If there are information should be solicited on the Officer, Career SES difficulties submitting comments, SF 28. 2. Terry Balazs, Director of contact the GSA Regulatory Secretariat Response: The renewal of the Technology, Services, and Innovation, Division at 202–501–4755 or information collection is required to Career SES [email protected]. ensure compliance with the Paperwork 3. Gary Thatcher, Associate Director FOR FURTHER INFORMATION CONTACT: Reduction Act as the current approval for Program Support, Career SES Zenaida Delgado, Procurement Analyst, for OMB Control number 9000–0001 4. Kelu Chao, Director for Language at telephone 202–969–7207, or expires on February 28,2021. As stated Programming, Voice of America, Career [email protected]. in section VII. of the final rule preamble SES SUPPLEMENTARY INFORMATION: for FAR Case 2017–003 (86 FR 3682), Dated: January 14, 2021. changes to the SF 28 are needed to Daniel Rosenhotlz, A. OMB control number, Title, and any update the language in the form to be Attorney-Advisor, Policy Officer, U.S. Agency Associated Form(s) consistent with the changes to the FAR for Global Media. 9000–0001, Standard Form 28, text. The modification of the SF 28 does [FR Doc. 2021–01360 Filed 1–21–21; 8:45 am] not impose additional information Affidavit of Individual Surety. BILLING CODE 8610–01–P collection requirements. B. Needs and Uses Obtaining Copies: Requesters may This clearance covers the information obtain a copy of the information that offerors or contractors must submit collection documents from the GSA DEPARTMENT OF HEALTH AND to comply with the following Federal Regulatory Secretariat Division, by HUMAN SERVICES Acquisition Regulation (FAR) calling 202–501–4755 or emailing requirement: [email protected]. Please cite OMB Health Resources and Services • Standard Form (SF) 28, Affidavit of Control No. 9000–0001, Standard Form Administration Individual Surety. This form is used by 28, Affidavit of Individual Surety. all executive agencies, including the National Vaccine Injury Compensation Department of Defense (DoD), to obtain William F. Clark, Program; List of Petitions Received information from individuals wishing to Director, Office of Government-wide AGENCY: Health Resources and Services serve as sureties to Government bonds. Acquisition Policy, Office of Acquisition Administration (HRSA), Department of Policy, Office of Government-wide Policy. Offerors and contractors may use an Health and Human Services (HHS). individual surety as security for bonds [FR Doc. 2021–01334 Filed 1–21–21; 8:45 am] ACTION: Notice. required under a solicitation or contract BILLING CODE 6820–EP–P

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SUMMARY: HRSA is publishing this Section 2112(b)(2) of the PHS Act, 42 to information required for purposes of notice of petitions received under the U.S.C. 300aa–12(b)(2), requires that carrying out the Program. National Vaccine Injury Compensation ‘‘[w]ithin 30 days after the Secretary Thomas J. Engels, Program (the Program), as required by receives service of any petition filed the Public Health Service (PHS) Act, as under section 2111 the Secretary shall Administrator. amended. While the Secretary of HHS is publish notice of such petition in the List of Petitions Filed named as the respondent in all Federal Register.’’ Set forth below is a 1. Edward Ries, Avon, Ohio, Court of proceedings brought by the filing of list of petitions received by HRSA on Federal Claims No: 20–1711V petitions for compensation under the December 1, 2020, through December 2. Allison Reilly, Boston, Massachusetts, Program, the United States Court of 31, 2020. This list provides the name of Court of Federal Claims No: 20– Federal Claims is charged by statute petitioner, city and state of vaccination 1712V with responsibility for considering and (if unknown then city and state of 3. Gail Wiggins, Renton, Washington, acting upon the petitions. person or attorney filing claim), and Court of Federal Claims No: 20– FOR FURTHER INFORMATION CONTACT: For case number. In cases where the Court 1713V information about requirements for has redacted the name of a petitioner 4. Gorden Collins, Biddeford, Maine, filing petitions, and the Program in and/or the case number, the list reflects Court of Federal Claims No: 20– general, contact Lisa L. Reyes, Clerk of such redaction. 1715V Court, United States Court of Federal Section 2112(b)(2) also provides that 5. Amanda Trombatura on behalf of Claims, 717 Madison Place NW, the special master ‘‘shall afford all G.T., Jackson, New Jersey, Court of Washington, DC 20005, (202) 357–6400. interested persons an opportunity to Federal Claims No: 20–1716V For information on HRSA’s role in the submit relevant, written information’’ 6. Lisa Plaza, Taylor, Michigan, Court of Program, contact the Director, National relating to the following: Federal Claims No: 20–1717V Vaccine Injury Compensation Program, 1. The existence of evidence ‘‘that 7. John Robinson, Wheaton, Illinois, 5600 Fishers Lane, Room 08N146B, there is not a preponderance of the Court of Federal Claims No: 20– Rockville, Maryland 20857; (301) 443– evidence that the illness, disability, 1718V 6593, or visit our website at: http:// injury, condition, or death described in 8. Taner Baylee Nguyen, Fort Campbell, www.hrsa.gov/vaccinecompensation/ the petition is due to factors unrelated Kentucky, Court of Federal Claims index.html. to the administration of the vaccine No: 20–1719V described in the petition,’’ and 9. Michael Mantagas, Manalapan, New SUPPLEMENTARY INFORMATION: The 2. Any allegation in a petition that the Jersey, Court of Federal Claims No: Program provides a system of no-fault petitioner either: 20–1720V compensation for certain individuals a. ‘‘[S]ustained, or had significantly 10. Jeanille Gatta, Wilmington, who have been injured by specified aggravated, any illness, disability, Delaware, Court of Federal Claims childhood vaccines. Subtitle 2 of Title injury, or condition not set forth in the No: 20–1721V XXI of the PHS Act, 42 U.S.C. 300aa– Vaccine Injury Table but which was 11. Stacey Beckerley, San Diego, 10 et seq., provides that those seeking caused by’’ one of the vaccines referred California, Court of Federal Claims compensation are to file a petition with to in the Table, or No: 20–1723V the United States Court of Federal b. ‘‘[S]ustained, or had significantly 12. Jennifer Powell, Tyler, Texas, Court Claims and to serve a copy of the aggravated, any illness, disability, of Federal Claims No: 20–1726V petition to the Secretary of HHS, who is injury, or condition set forth in the 13. Sovanna Sin, Stockton, California, named as the respondent in each Vaccine Injury Table the first symptom Court of Federal Claims No: 20– proceeding. The Secretary has delegated or manifestation of the onset or 1727V 14. Yvonne Nelson-Eastman, Howard this responsibility under the Program to significant aggravation of which did not Beach, New York, Court of Federal HRSA. The Court is directed by statute occur within the time period set forth in Claims No: 20–1728V to appoint special masters who take the Table but which was caused by a evidence, conduct hearings as 15. Brian Eveland, Osage Beach, vaccine’’ referred to in the Table. Missouri, Court of Federal Claims appropriate, and make initial decisions In accordance with Section as to eligibility for, and amount of, No: 20–1729V 2112(b)(2), all interested persons may 16. Steven Rothenberg, Glynco, Georgia, compensation. submit written information relevant to Court of Federal Claims No: 20– A petition may be filed with respect the issues described above in the case of 1730V to injuries, disabilities, illnesses, the petitions listed below. Any person 17. Jennifer Salvaggio, Boston, conditions, and deaths resulting from choosing to do so should file an original Massachusetts, Court of Federal vaccines described in the Vaccine Injury and three (3) copies of the information Claims No: 20–1731V Table (the Table) set forth at 42 CFR with the Clerk of the United States 18. Lori DeCostanzo, New York, New 100.3. This Table lists for each covered Court of Federal Claims at the address York, Court of Federal Claims No: childhood vaccine the conditions that listed above (under the heading FOR 20–1733V may lead to compensation and, for each FURTHER INFORMATION CONTACT), with a 19. Stephanie Banks and Bradley Banks condition, the time period for copy to HRSA addressed to Director, on behalf of B.B., Orange, occurrence of the first symptom or Division of Injury Compensation California, Court of Federal Claims manifestation of onset or of significant Programs, Healthcare Systems Bureau, No: 20–1734V aggravation after vaccine 5600 Fishers Lane, 08N146B, Rockville, 20. Jennifer Craft, Media, Pennsylvania, administration. Compensation may also Maryland 20857. The Court’s caption Court of Federal Claims No: 20– be awarded for conditions not listed in (Petitioner’s Name v. Secretary of HHS) 1735V the Table and for conditions that are and the docket number assigned to the 21. Brenda Lindsey, Richmond, manifested outside the time periods petition should be used as the caption Virginia, Court of Federal Claims specified in the Table, but only if the for the written submission. Chapter 35 No: 20–1737V petitioner shows that the condition was of title 44, United States Code, related 22. Michael Gauer, Boise, Idaho, Court caused by one of the listed vaccines. to paperwork reduction, does not apply of Federal Claims No: 20–1738V

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23. Kerry Grant, Canastota, New York, 46. Roland O’Connor, Spring City, 69. Annette Danielle Lucero, Clackamas, Court of Federal Claims No: 20– Pennsylvania, Court of Federal Oregon, Court of Federal Claims No: 1740V Claims No: 20–1765V 20–1789V 24. Keira S. Brooke, Middletown, Ohio, 47. Ellen Decker, LaVale, Maryland, 70. Amanda McCartney, Ocala, Florida, Court of Federal Claims No: 20– Court of Federal Claims No: 20– Court of Federal Claims No: 20– 1741V 1766V 1790V 25. Pamela Cavanagh, Boston, 48. Mayra Callejas, Katy, Texas, Court of 71. Juliette Levy on behalf of J.L., Massachusetts, Court of Federal Federal Claims No: 20–1767V Orange, California, Court of Federal Claims No: 20–1742V 49. Kimberly Neighbors, Tulsa, Claims No: 20–1791V 26. CaSaundra Mullen, Boston, Oklahoma, Court of Federal Claims 72. David Stewart on behalf of J.S., Coos Massachusetts, Court of Federal No: 20–1768V Bay, Oregon, Court of Federal Claims No: 20–1743V 50. Theresa Copley-Smith, Boston, Claims No: 20–1792V 27. Kevin Reddington, North Wales, Massachusetts, Court of Federal 73. Roxanne Cardinal, Boston, Pennsylvania, Court of Federal Claims No: 20–1769V Massachusetts, Court of Federal Claims No: 20–1744V 51. Richard Stavale, Portland, Oregon, Claims No: 20–1793V 28. Sena Slaughter, Fayetteville, Court of Federal Claims No: 20– 74. Christine Kasulis, Boston, Arkansas, Court of Federal Claims 1770V Massachusetts, Court of Federal No: 20–1745V 52. Joel Wilson, Richfield, Minnesota, Claims No: 20–1794V 29. Sheryl Turk, Oceanside, New York, Court of Federal Claims No: 20– 75. Amanda DeCook, Concord, New Court of Federal Claims No: 20– 1771V Hampshire, Court of Federal Claims 1747V 53. Joyce Kasper, Bellevue, Washington, No: 20–1795V 30. Pamela Caswell, Escanaba, Court of Federal Claims No: 20– 76. Jason Loos, Rochester, Minnesota, Michigan, Court of Federal Claims 1772V Court of Federal Claims No: 20– No: 20–1749V 54. Elizabeth Aldea-Cruz, Washington, 1796V 31. Mairi Luce, Boston, Massachusetts, District of Columbia, Court of 77. Arkie Tucker-Corley, , Court of Federal Claims No: 20– Federal Claims No: 20–1773V Virginia, Court of Federal Claims 1750V 55. Danielle Allen, Washington, District No: 20–1797V 32. Margaret Khan, Farmingdale, New of Columbia, Court of Federal 78. Gerald Mesecher, John Day, Oregon, York, Court of Federal Claims No: Claims No: 20–1774V Court of Federal Claims No: 20– 20–1751V 56. Joel Alvarez, Washington, District of 1798V 33. Dolores Ramirez, Glendale, Arizona, Columbia, Court of Federal Claims 79. Andrew Harmon and Jill Harmon on Court of Federal Claims No: 20– No: 20–1775V behalf of K.H., Grand Junction, 1752V 57. Juanito Aquino, Washington, District Colorado, Court of Federal Claims 34. Tawnette Harris, Renton, of Columbia, Court of Federal No: 20–1799V 80. Nada Resnik-McNenny, Lincoln, Washington, Court of Federal Claims No: 20–1776V Nebraska, Court of Federal Claims Claims No: 20–1753V 58. Lea Ayotte, Washington, District of 35. Tiffany Madrid, Orlando, Florida, Columbia, Court of Federal Claims No: 20–1800V 81. Carol Ann Girgenti, Newport Richey, Court of Federal Claims No: 20– No: 20–1777V Florida, Court of Federal Claims No: 1754V 59. Nancy Bernhardt, Washington, 20–1802V 36. Malanda Dixon, Dickson, Tennessee, District of Columbia, Court of 82. Nicole Bingham, Salt Lake City, Court of Federal Claims No: 20– Federal Claims No: 20–1778V Utah, Court of Federal Claims No: 60. Jessica Blankenship, Washington, 1755V 20–1803V 37. Danielle Rodriguez, Kissimmee, District of Columbia, Court of 83. Deborah Mosora, Sharon, Florida, Court of Federal Claims No: Federal Claims No: 20–1779V Pennsylvania, Court of Federal 20–1756V 61. George Potak, Mesquite, Nevada, Claims No: 20–1804V 38. Joseph Ferguson, Johnson City, New Court of Federal Claims No: 20– 84. Jennifer Priest, Sarasota, Florida, York, Court of Federal Claims No: 1780V Court of Federal Claims No: 20– 20–1757V 62. Lucinda Long, Port St. Lucie, 1805V 39. Lindsay Nowland, Baltimore, Florida, Court of Federal Claims No: 85. Elaine Tornatore, Glassboro, New Maryland, Court of Federal Claims 20–1781V Jersey, Court of Federal Claims No: No: 20–1758V 63. Courtney Counts and Christopher 20–1806V 40. Rosemary Chaves, Ft. Myers, Counts on behalf of M.C., Phoenix, 86. Walter Corter, Seattle, Washington, Florida, Court of Federal Claims No: Arizona, Court of Federal Claims Court of Federal Claims No: 20– 20–1759V No: 20–1782V 1807V 41. Jacqueline ‘‘Jackie’’ Smith, 64. Laura Cosden, Gettysburg, 87. Cindal Menard, Concord, New Owatonna, Minnesota, Court of Pennsylvania, Court of Federal Hampshire, Court of Federal Claims Federal Claims No: 20–1760V Claims No: 20–1783V No: 20–1809V 42. Christyne Ruffolo, Boston, 65. Donna Smith, Boston, 88. James Olsen, Harrison, Arkansas, Massachusetts, Court of Federal Massachusetts, Court of Federal Court of Federal Claims No: 20– Claims No: 20–1761V Claims No: 20–1785V 1810V 43. James Vaughan, Crofton, Maryland, 66. Michele Nunziata, Rochester, New 89. Curtiss Gunter on behalf of Kelley Court of Federal Claims No: 20– York, Court of Federal Claims No: Gunter, Albany, Kentucky, Court of 1762V 20–1786V Federal Claims No: 20–1812V 44. Jaclyn McNally, , Illinois, 67. Judy Robinson, Bagram, 90. Linda Charlene Clifton, Perryville, Court of Federal Claims No: 20– , Court of Federal Mississippi, Court of Federal 1763V Claims No: 20–1787V Claims No: 20–1813V 45. Maya Federman, Montclair, 68. Sara J. White, North Tonawanda, 91. Calvin Riley, Mount Pleasant, Texas, California, Court of Federal Claims New York, Court of Federal Claims Court of Federal Claims No: 20– No: 20–1764V No: 20–1788V 1814V

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92. Michael J. Sayles, Ft. Worth, Texas, 115. Fayth Brennan, Monticello, 139. Bria Barry, Boston, Massachusetts, Court of Federal Claims No: 20– Minnesota, Court of Federal Claims Court of Federal Claims No: 20– 1817V No: 20–1844V 1874V 93. Jeffrey A. Fowler, Wellesley Hills, 116. Sylvia Lyons, Chicago Heights, 140. Lauren Browning, Glendale, Massachusetts, Court of Federal Illinois, Court of Federal Claims No: California, Court of Federal Claims Claims No: 20–1819V 20–1846V No: 20–1875V 94. James Barnett, Gainesville, Virginia, 117. Shawn Ramey, Troy, Michigan, 141. Elizabeth Jones, Ocean Pines, Court of Federal Claims No: 20– Court of Federal Claims No: 20– Maryland, Court of Federal Claims 1820V 1847V No: 20–1876V 95. Felicia Inez Williams, Philadelphia, 118. Debra Heagle, Stevens Point, 142. Catherine DiBiase, Warwick, Rhode Pennsylvania, Court of Federal Wisconsin, Court of Federal Claims Island, Court of Federal Claims No: Claims No: 20–1821V No: 20–1848V 20–1877V 96. Angela D. Henderson, Roanoke, 119. Kathryn Vashro, New London, New 143. Bridget Strobl, Santa Cruz, Virginia, Court of Federal Claims Hampshire, Court of Federal Claims California, Court of Federal Claims No: 20–1822V No: 20–1849V No: 20–1879V 97. Amanda Washkalavitch, Upland, 120. Liana Krissoff, Boston, 144. Dorothy Sell, Boston, Pennsylvania, Court of Federal Massachusetts, Court of Federal Massachusetts, Court of Federal Claims No: 20–1823V Claims No: 20–1850V Claims No: 20–1880V 98. Jill Nelson, Fergus Falls, Minnesota, 121. Vicky Schultz, Boston, 145. Christine Harbison, Lafayette, Court of Federal Claims No: 20– Massachusetts, Court of Federal Louisiana, Court of Federal Claims 1824V Claims No: 20–1851V No: 20–1881V 99. Ernesto Cardenas, Skokie, Illinois, 122. Stacey Hurley, Newark, Delaware, 146. Kelly Joyce, Boston, Massachusetts, Court of Federal Claims No: 20– Court of Federal Claims No: 20– Court of Federal Claims No: 20– 1825V 1852V 1882V 100. Kathy Emrich and Jeremy Emrich 123. Melissa Caparrelli, Plantation, 147. Amanda Heneage, Columbia, South on behalf of K.E., North Charleston, Florida, Court of Federal Claims No: Carolina, Court of Federal Claims South Carolina, Court of Federal 20–1853V No: 20–1886V Claims No: 20–1826V 124. Michelle Whitaker, Boston, 148. Virginia Rossiter, New Hartford, 101. Mohamed Omar, Boston, Massachusetts, Court of Federal New York, Court of Federal Claims Massachusetts, Court of Federal Claims No: 20–1855V No: 20–1888V Claims No: 20–1827V 125. Tresa Burrell, Boston, 149. Donna M. Winters, Groveland, 102. Deanna Medina, Boston, Massachusetts, Court of Federal Florida, Court of Federal Claims No: Massachusetts, Court of Federal Claims No: 20–1856V 20–1890V Claims No: 20–1828V 126. Gabriel Flores, Chicago, Illinois, 150. Don Brown, Washington, District of 103. Tara Leach, Tamaqua, Court of Federal Claims No: 20– Columbia, Court of Federal Claims Pennsylvania, Court of Federal 1858V No: 20–1891V Claims No: 20–1829V 127. Jared Stern, Chicago, Illinois, Court 151. Stefanie Herbert and Andrew 104. Christina Ramirez, Gainesville, of Federal Claims No: 20–1860V Herbert on behalf of E.H., Houston, Virginia, Court of Federal Claims 128. Kerri Blumenthal, Boston, Texas, Court of Federal Claims No: No: 20–1830V Massachusetts, Court of Federal 20–1892V 105. Nicole Fey, Boynton Beach, Claims No: 20–1861V 152. Carol Lee Evans, Washington, Florida, Court of Federal Claims No: 129. Shelly Priebe, Austin, Texas, Court District of Columbia, Court of 20–1832V of Federal Claims No: 20–1862V Federal Claims No: 20–1893V 106. Jessica Puckett on behalf of E.P., 130. Carol Powley, Middleburg, 153. George Brock, Eau Claire, Fort Mill, South Carolina, Court of Pennsylvania, Court of Federal Wisconsin, Court of Federal Claims Federal Claims No: 20–1833V Claims No: 20–1863V No: 20–1894V 107. Will Faust, New York, New York, 131. Barbara Brewer, Russellville, 154. David B. Johnson, Washington, Court of Federal Claims No: 20– Alabama, Court of Federal Claims District of Columbia, Court of 1835V No: 20–1864V Federal Claims No: 20–1895V 108. Wendy W. Coppack on behalf of 132. Kathleen Clendenning, Evanston, 155. Noel Fie, San Luis Obispo, Estate of Hazey Wilkinson, Illinois, Court of Federal Claims No: California, Court of Federal Claims Deceased, Dothan, Alabama, Court 20–1865V No: 20–1896V of Federal Claims No: 20–1836V 133. Lindsay Geraghty, Western Springs, 156. Julie Finn, M.D., Farmington Hills, 109. Liesl Ries, Columbus, Ohio, Court Illinois, Court of Federal Claims No: Michigan, Court of Federal Claims of Federal Claims No: 20–1838V 20–1866V No: 20–1897V 110. Anne Garza, Southlake, Texas, 134. Linda Perrico, Boston, 157. Emily Fenster, Armonk, New York, Court of Federal Claims No: 20– Massachusetts, Court of Federal Court of Federal Claims No: 20– 1839V Claims No: 20–1867V 1898V 111. Nubia Rivera, Philadelphia, 135. Theresa Buoni, Boston, 158. Tina Wicks, Chesterfield, Missouri, Pennsylvania, Court of Federal Massachusetts, Court of Federal Court of Federal Claims No: 20– Claims No: 20–1840V Claims No: 20–1868V 1899V 112. Kathy Stiller, East Aurora, New 136. Deanna Harris, Lewiston, Idaho, 159. Rebecca Joan Miller, Latrobe, York, Court of Federal Claims No: Court of Federal Claims No: 20– Pennsylvania, Court of Federal 20–1841V 1869V Claims No: 20–1900V 113. Eve Bunting-Smith, White Plains, 137. Gavin Roth, Lexington, Kentucky, 160. Clare Dominque, Worcester, New York, Court of Federal Claims Court of Federal Claims No: 20– Massachusetts, Court of Federal No: 20–1842V 1872V Claims No: 20–1904V 114. Nelson Ferry, Murphysboro, 138. Glenda Gotlieb, Suffern, New York, 161. Linda Timberlake, Peoria, Illinois, Illinois, Court of Federal Claims No: Court of Federal Claims No: 20– Court of Federal Claims No: 20– 20–1843V 1873V 1905V

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162. Rayford Harden, Loganville, 185. Menakshi Bhat, Boston, 208. Allison A. Hayes, Grand Ledge, Georgia, Court of Federal Claims Massachusetts, Court of Federal Michigan, Court of Federal Claims No: 20–1906V Claims No: 20–1930V No: 20–1959V 163. Mykayla Carollo, Winter Park, 186. Brian Chew, Eatontown, New 209. Michele Snyder, Buffalo, New Florida, Court of Federal Claims No: Jersey, Court of Federal Claims No: York, Court of Federal Claims No: 20–1907V 20–1931V 20–1961V 164. Alice Rivera, Vero Beach, Florida, 187. Joel Greco, Greensboro, North 210. Debra Moore, Boston, Court of Federal Claims No: 20– Carolina, Court of Federal Claims Massachusetts, Court of Federal 1908V No: 20–1932V Claims No: 20–1962V 165. Mackay Heasley, Washington, 188. Kathleen Mau, Cleveland, Ohio, 211. Ann Swales, California, Maryland, District of Columbia, Court of Court of Federal Claims No: 20– Court of Federal Claims No: 20– Federal Claims No: 20–1909V 1933V 1963V 166. Kayla Klinglesmith, Washington, 189. James James, Boston, 212. Andrew Newell, Terre Haute, District of Columbia, Court of Massachusetts, Court of Federal Indiana, Court of Federal Claims Federal Claims No: 20–1910V Claims No: 20–1934V No: 20–1964V 167. Benjamin Kochevar, Washington, 213. Mikael Langner, Boston, 190. Janet Forbes, Ocala, Florida, Court District of Columbia, Court of Massachusetts, Court of Federal of Federal Claims No: 20–1935V Federal Claims No: 20–1911V Claims No: 20–1965V 191. Daniel Miller, Boston, 168. Ashley Koon, Washington, District 214. Dawn Felton, Wake Forest, North Massachusetts, Court of Federal of Columbia, Court of Federal Carolina, Court of Federal Claims Claims No: 20–1937V Claims No: 20–1912V No: 20–1969V 169. Karen Labonte, Washington, 192. Gregory Streeter, Morrisville, 215. Don Shields, Houston, Texas, Court District of Columbia, Court of Vermont, Court of Federal Claims of Federal Claims No: 20–1970V Federal Claims No: 20–1913V No: 20–1939V 216. Eileen Smestad, Farmingdale, New 170. Andrea Lepera, Washington, 193. Bernadette Strand, Oconomowoc, York, Court of Federal Claims No: District of Columbia, Court of Wisconsin, Court of Federal Claims 20–1971V Federal Claims No: 20–1914V No: 20–1940V 217. Scott Southerland, St. Clair Shores, 171. Anne Mathura, Washington, 194. Rose C. Williams, Kenner, Michigan, Court of Federal Claims District of Columbia, Court of Louisiana, Court of Federal Claims No: 20–1972V Federal Claims No: 20–1915V No: 20–1941V 218. Yolanda Marie Martinez, Alamosa, 172. Allison Miller, Washington, 195. Taone Randazzo, Boston, Colorado, Court of Federal Claims District of Columbia, Court of Massachusetts, Court of Federal No: 20–1973V Federal Claims No: 20–1916V Claims No: 20–1942V 219. Scott Southerland, St. Clair Shores, 173. Kimberely Mullins, Washington, 196. Brenda Hedeen, Boston, Michigan, Court of Federal Claims District of Columbia, Court of Massachusetts, Court of Federal No: 20–1976V Federal Claims No: 20–1917V Claims No: 20–1943V 220. Dana Smith, Fort Smith, Arizona, 174. Alan Oka, Washington, District of 197. Mariell Meacham, New York, New Court of Federal Claims No: 20– Columbia, Court of Federal Claims York, Court of Federal Claims No: 1977V No: 20–1918V 20–1944V 221. Sandra Jean Riffelmacher, 175. James Patterson, Washington, 198. James Crogan, Boston, Gloucester, Massachusetts, Court of District of Columbia, Court of Massachusetts, Court of Federal Federal Claims No: 20–1980V Federal Claims No: 20–1919V Claims No: 20–1945V 222. Shirley Scott, Flowood, 176. Loni Sansevere, Margate, Florida, 199. Daniel R. Cole, Sr., Somers Point, Mississippi, Court of Federal Court of Federal Claims No: 20– New Jersey, Court of Federal Claims Claims No: 20–1982V 1920V No: 20–1946V 223. Maria Mendez, Boston, 177. Theodore R. East, Jr., Glencoe, 200. Cynthia V. Acheampong, Dumfries, Massachusetts, Court of Federal Alabama, Court of Federal Claims Virginia, Court of Federal Claims Claims No: 20–1985V No: 20–1921V No: 20–1947V 224. Curtis Ingram, Boston, 178. Barbara Hickey, Staten Island, New 201. Sherry F. Mitchell, Collierville, Massachusetts, Court of Federal York, Court of Federal Claims No: Tennessee, Court of Federal Claims Claims No: 20–1987V 20–1922V 225. Nancy Lee McCarn, Cape Coral, No: 20–1950V 179. James Hodge, Boston, Florida, Court of Federal Claims No: 202. Katie Danso-Danquah, Richmond, Massachusetts, Court of Federal 20–1988V Claims No: 20–1923V Virginia, Court of Federal Claims 226. Carol Preis, Garden City, New 180. Ye Xia on behalf of Estate of S.L., No: 20–1951V Jersey, Court of Federal Claims No: Deceased, Boston, Massachusetts, 203. Cathy Humerickhouse, Visalia, 20–1989V Court of Federal Claims No: 20– California, Court of Federal Claims 227. Desiree Savage-Davis, Boston, 1924V No: 20–1953V Massachusetts, Court of Federal 181. Earl Ball, Boston, Massachusetts, 204. Kathy Foulker, Rockford, Illinois, Claims No: 20–1990V Court of Federal Claims No: 20– Court of Federal Claims No: 20– 228. Emily Smith, Toledo, Ohio, Court 1926V 1955V of Federal Claims No: 20–1993V 182. Michael R. Pulley, Pikeville, North 205. Eva Ivey on behalf of M.I., Bastrop, 229. Patricia Doyle, Jonesboro, Georgia, Carolina, Court of Federal Claims Texas, Court of Federal Claims No: Court of Federal Claims No: 20– No: 20–1927V 20–1956V 1994V 183. Laurel Acosta, Boston, 206. Tanner Nadeau, Barron, Wisconsin, 230. Mhyrynde Noa, Dresher, Massachusetts, Court of Federal Court of Federal Claims No: 20– Pennsylvania, Court of Federal Claims No: 20–1928V 1957V Claims No: 20–1996V 184. Jennifer A. Clasen, New Berlin, 207. Harlan Field, Boston, 231. Kathy Terry, Dresher, Wisconsin, Court of Federal Claims Massachusetts, Court of Federal Pennsylvania, Court of Federal No: 20–1929V Claims No: 20–1958V Claims No: 20–1998V

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232. Lynda Wojan, Menifee, California, 255. Maria Belen Banaag, Boston, 278. Brandon Winkler, Beverly Hills, Court of Federal Claims No: 20– Massachusetts, Court of Federal California, Court of Federal Claims 1999V Claims No: 20–2029V No: 20–2065V 233. Zsuzsanna Kimball, Boston, 256. Marcus Bowen, Boston, 279. George Heidrich, Madison, Massachusetts, Court of Federal Massachusetts, Court of Federal Wisconsin, Court of Federal Claims Claims No: 20–2000V Claims No: 20–2030V No: 20–2066V 234. Sheralee Marshall, Boston, 257. Jennifer Meyer, Boston, 280. Pierrette Jacobs, Phoenix, Arizona, Massachusetts, Court of Federal Massachusetts, Court of Federal Court of Federal Claims No: 20– Claims No: 20–2001V Claims No: 20–2031V 2067V 235. Richard Lombardozzi, Boston, 258. Ilse Kershaw, Boston, 281. Pamela Colby, Beverly Hills, Massachusetts, Court of Federal Massachusetts, Court of Federal California, Court of Federal Claims Claims No: 20–2005V Claims No: 20–2032V No: 20–2068V 236. Catherine Phipps, Boston, 259. Thomas Gothers, Norristown, 282. Lori Roulette, Beverly Hills, Massachusetts, Court of Federal Pennsylvania, Court of Federal California, Court of Federal Claims Claims No: 20–2006V Claims No: 20–2033V No: 20–2069V 237. Jodi McGraw, Boston, 260. Jacqueline Archibald, Boston, 283. Timothy Sisneros, Beverly Hills, Massachusetts, Court of Federal Massachusetts, Court of Federal California, Court of Federal Claims Claims No: 20–2007V Claims No: 20–2034V No: 20–2070V 238. Brian Phillip Crane, Boston, 261. Bridget Hastings, Boston, 284. Jeannine Woods, Beverly Hills, Massachusetts, Court of Federal Massachusetts, Court of Federal California, Court of Federal Claims Claims No: 20–2008V Claims No: 20–2035V No: 20–2071V 239. Daniel Komarchuk, Boston, 262. Dee Wharton, Boston, 285. Milford Stingfellow, Beverly Hills, Massachusetts, Court of Federal Massachusetts, Court of Federal California, Court of Federal Claims Claims No: 20–2009V Claims No: 20–2036V No: 20–2072V 240. Susan Clark-Granger, Boston, 263. Brenda Pickard, Boston, 286. Susan Poynton, Beverly Hills, Massachusetts, Court of Federal Massachusetts, Court of Federal California, Court of Federal Claims Claims No: 20–2010V Claims No: 20–2040V No: 20–2073V 241. Jerome Pittman, Sr. Union City, 264. Judith Hatt, Boston, Massachusetts, 287. Harriet Papastamatakis, New York, Georgia, Court of Federal Claims Court of Federal Claims No: 20– New York, Court of Federal Claims No: 20–2011V 2041V No: 20–2074V 242. Judith Gilmour, Boston, 265. Shana McDade, Atlanta, Georgia, 288. May Tom, Beverly Hills, California, Massachusetts, Court of Federal Court of Federal Claims No: 20– Court of Federal Claims No: 20– Claims No: 20–2012V 2045V 2075V 243. Teresa L. Ritter, New Berlin, 266. Margie S. Keeling, Jackson, 289. Angelynn Ellenbecker, Beverly Wisconsin, Court of Federal Claims Mississippi, Court of Federal Hills, California, Court of Federal No: 20–2013V Claims No: 20–2048V Claims No: 20–2076V 244. Michael Graves, Boston, 290. Luz Roa, Beverly Hills, California, Massachusetts, Court of Federal 267. Belkis Diaz, Lakeland, Florida, Court of Federal Claims No: 20– Court of Federal Claims No: 20– Claims No: 20–2014V 2077V 245. William E. Wohlleben, New Berlin, 2049V 268. Leslie Andersen, Boston, 291. Sabrina Eve Valentine, Beverly Wisconsin, Court of Federal Claims Hills, California, Court of Federal No: 20–2015V Massachusetts, Court of Federal Claims No: 20–2050V Claims No: 20–2078V 246. Jill Fudesco, Hartford, Connecticut, 292. Nurcys Grimes, Tustin, California, Court of Federal Claims No: 20– 269. Monique Ginn, Newark, New Jersey, Court of Federal Claims No: Court of Federal Claims No: 20– 2017V 2082V 247. Joseph Soares, Palm Coast, Florida, 20–2052V Court of Federal Claims No: 20– 270. Jonathan Dilger, Baltimore, [FR Doc. 2021–01331 Filed 1–21–21; 8:45 am] 2019V Maryland, Court of Federal Claims BILLING CODE 4165–15–P 248. Paul Enstrom, Greensboro, North No: 20–2054V Carolina, Court of Federal Claims 271. Cheryl Fajge, Souderton, DEPARTMENT OF HEALTH AND No: 20–2020V Pennsylvania, Court of Federal HUMAN SERVICES 249. John M. Lewis, Boscobel, Claims No: 20–2055V 272. Tiffany Curry on behalf of J. B. Wisconsin, Court of Federal Claims Health Information Technology Hopewell, Virginia, Court of No: 20–2021V Advisory Committee 2021 Schedule of Federal Claims No: 20–2057V 250. Kristine E. Zadrazil, Sun Prairie, Meetings Wisconsin, Court of Federal Claims 273. Margaret Eddings, Coeur D’Alene, No: 20–2024V Idaho, Court of Federal Claims No: AGENCY: Office of the National 251. Andrea Navis, Waukesha, 20–2058V Coordinator for Health Information Wisconsin, Court of Federal Claims 274. Megan Hebbard-Contreras, Dresher, Technology (ONC), HHS. No: 20–2025V Pennsylvania, Court of Federal ACTION: Notice of meetings. 252. Michelle Shea, Summit, Wisconsin, Claims No: 20–2059V Court of Federal Claims No: 20– 275. Francisco Marcillo, Sarasota, SUMMARY: The Health Information 2026V Florida, Court of Federal Claims No: Technology Advisory Committee 253. Devin Hildebrand on behalf of T. 20–2061V (HITAC) was established in accordance H. Burlington, New Jersey, Court of 276. Keysha Ellis, Plano, Texas, Court of with the 21st Century Cures Act and the Federal Claims No: 20–2027V Federal Claims No: 20–2063V Federal Advisory Committee Act. The 254. Katharine Towlen, Linwood, New 277. Mariah Chatman, Manning, South HITAC, among other things, identifies Jersey, Court of Federal Claims No: Carolina, Court of Federal Claims priorities for standards adoption and 20–2028V No: 20–2064V makes recommendations to the National

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Coordinator for Health Information • January 13, 2021 from oral public comment period will be Technology (National Coordinator). The approximately 9:30 a.m. to 2:30 p.m./ scheduled at each meeting. Time HITAC will hold public meetings Eastern Time (virtual meeting) allotted for each commenter will be throughout 2021. See list of public • February 10, 2021 from limited to three minutes. If the number meetings below. approximately 9:30 a.m. to 2:30 p.m./ of speakers requesting to comment is FOR FURTHER INFORMATION CONTACT: Eastern Time (virtual meeting) greater than can be reasonably • Lauren Richie, Designated Federal March 10, 2021 from approximately accommodated during the scheduled Officer, at [email protected], (202) 9:30 a.m. to 2:30 p.m./Eastern Time public comment period, ONC will take 205–7674. (virtual meeting) written comments after the meeting. • April 15, 2021 from approximately Persons attending in-person HITAC SUPPLEMENTARY INFORMATION: Section 9:30 a.m. to 2:30 p.m./Eastern Time meetings are advised that the agency is 4003(e) of the 21st Century Cures Act (virtual meeting) not responsible for providing wireless (Pub. L. 114–255) establishes the Health • May 13, 2021 from approximately access or access to electrical outlets. Information Technology Advisory 9:30 a.m. to 2:30 p.m./Eastern Time ONC welcomes the attendance of the Committee (referred to as the ‘‘HITAC’’). (virtual meeting) public at its HITAC meetings. Seating is The HITAC will be governed by the • June 9, 2021 from approximately limited at in-person meetings, and ONC provisions of the Federal Advisory 9:30 a.m. to 2:30 p.m./Eastern Time will make every effort to accommodate Committee Act (FACA) (Pub. L. 92– (virtual meeting) persons with physical disabilities or • 463), as amended, (5 U.S.C. App.), July 14, 2021 from approximately special needs. If you require special which sets forth standards for the 9:30 a.m. to 2:30 p.m./Easter Time accommodations due to a disability, formation and use of federal advisory (virtual meeting) • please contact Lauren Richie at least committees. September 9, 2021 from seven (7) days in advance of the Composition approximately 9:30 a.m. to 2:30 p.m./ meeting. Eastern Time (virtual meeting) Notice of these meetings are given The HITAC is comprised of at least 25 • November 10, 2021 from under the Federal Advisory Committee members, of which: approximately 9:30 a.m. to 2:30 p.m./ Act (Pub. L. 92–463, 5 U.S.C., App. 2). • No fewer than 2 members are Eastern Time (virtual meeting) advocates for patients or consumers of All meetings are open to the public. Dated: December 11, 2020. health information technology; Additional meetings may be scheduled Lauren Richie, • 3 members are appointed by the as needed. For web conference Designated Federal Officer, Office of the HHS Secretary; instructions and the most up-to-date National Coordinator for Health Information Æ 1 of whom shall be appointed to information, please visit the HITAC Technology. represent the Department of Health and calendar on the ONC website, https:// [FR Doc. 2021–01411 Filed 1–21–21; 8:45 am] Human Services; and www.healthit.gov/topic/federal- BILLING CODE 4150–45–P Æ 1 of whom shall be a public health advisory-committees/hitac-calendar. official; Contact Person for Meetings: Lauren • 2 members are appointed by the Richie, [email protected]. A notice DEPARTMENT OF HEALTH AND majority leader of the Senate; in the Federal Register about last HUMAN SERVICES • 2 members are appointed by the minute modifications that impact a [Document Identifier: OS–0990–New] minority leader of the Senate; previously announced advisory • 2 members are appointed by the committee meeting cannot always be Agency Information Collection Speaker of the House of Representatives; published quickly enough to provide Request; 30-Day Public Comment • 2 members are appointed by the timely notice. Please email Lauren Request minority leader of the House of Richie for the most current information AGENCY: Office of the Secretary, HHS. Representatives; and about meetings. • Other members are appointed by Agenda: As outlined in the 21st ACTION: Notice. Century Cures Act, the HITAC will the Comptroller General of the United SUMMARY: In compliance with the develop and submit recommendations States. requirement of the Paperwork to the National Coordinator on the Members will serve for one-, two-, or Reduction Act of 1995, the Office of the topics of interoperability, privacy and three-year terms. All members may be Secretary (OS), Department of Health security, and patient access. In addition, reappointed for a subsequent three-year and Human Services, is publishing the the committee will also address any term. Each member is limited to two following summary of a proposed administrative matters and hear three-year terms, not to exceed six years collection for public comment. of service. Members serve without pay, periodic reports from ONC. ONC DATES: Comments on the ICR must be but will be provided per-diem and intends to make background material received on or before February 22, 2021. travel costs for committee services, if available to the public no later than 24 warranted. hours prior to the meeting start time. If ADDRESSES: Written comments and ONC is unable to post the background recommendations for the proposed Recommendations material on its website prior to the information collection should be sent The HITAC recommendations to the meeting, the material will be made within 30 days of publication of this National Coordinator are publicly publicly available on ONC’s website notice to www.reginfo.gov/public/do/ available at https://www.healthit.gov/ after the meeting, at http:// PRAMain. Find this particular topic/federal-advisory-committees/ www.healthit.gov/hitac. information collection by selecting recommendations-national-coordinator- Procedure: Interested persons may ‘‘Currently under 30-day Review—Open health-it. present data, information, or views, for Public Comments’’ or by using the orally or in writing, on issues pending search function. Public Meetings before the committee. Written FOR FURTHER INFORMATION CONTACT: The schedule of meetings to be held submissions may be made to the contact Sherrette Funn, [email protected] in 2021 is as follows: person prior to the meeting date. An or (202) 795–7714. When submitting

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comments or requesting information, patterns and furthers the development business days, with the understanding please include the document identifier of policies for prevention and control of that respondents may not have 0990–New–30D and project title for disease spread and impact related to the sufficient staff working over the reference. 2019 Novel Coronavirus (COVID–19). weekend. It is our belief that collection SUPPLEMENTARY INFORMATION: Interested One of the most important uses of the of this information daily is the most persons are invited to send comments data collected through this ICR is to effective way to detect outbreaks and regarding this burden estimate or any determine critical allocations of limited needs for Federal assistance over time, other aspect of this collection of supplies (e.g., protective equipment and by hospital and geographical area, and information, including any of the medication). For instance, this to alert the appropriate officials for following subjects: (1) The necessity and collection has been used to distribute action. It’s requested that 5,500 utility of the proposed information Remdesivir, a vital therapeutic that HHS hospitals, submit data daily on the collection for the proper performance of distributes to the American healthcare number of patients tested for COVID–19, the agency’s functions; (2) the accuracy system, via distinct data calls on regular as well as information on bed capacity of the estimated burden; (3) ways to intervals. As of July 10, HHS reduced and requirements for other supplies. enhance the quality, utility, and clarity the number requests for data from The HHS Teletracking COVID–19 of the information to be collected; and hospitals to support allocations of Portal (U.S. Healthcare COVID–19 (4) the use of automated collection Remdesivir. HHS has stopped sending Portal) includes some data that were techniques or other forms of information out one-time requests for data to aid in initially submitted by hospitals to HHS technology to minimize the information the distribution of Remdesivir or any through CDC’s National Healthcare collection burden. other treatments or supplies. This Safety Network (NHSN) COVID–19 Title of the Collection: HHS consolidated daily reporting is the only Module (OMB Control No. 0920–1290, Teletracking COVID–19 Portal (U.S. mechanism used for the distribution approved 03/26/2020). Over the last Healthcare COVID–19 Portal). calculations, and daily reports are several months time, the guidance for Type of Collection: In use without an needed to ensure accurate calculations. which data elements should be sent to OMB number: OMB No. 0990–XXXX Type of respondent: We acknowledge HHS and through which method was OS/OCIO. the burden placed on many hospitals, updated at the request of the White Abstract: The data collected through including resource constraints, and have House Coronavirus Task Force and this ICR informs the Federal allowed for some flexibilities, such as other leaders to better inform the Government’s understanding of disease back-submissions or submitting every response.

ANNUALIZED BURDEN HOUR TABLE

Average Number of Number burden per Total burden Type of respondent Form name respondents responses per response hours respondent (in hours)

Hospitals ...... HHS Teletracking COVID–19 Portal 5,500 365 1.5 3,011,250 (U.S. Healthcare COVID–19 Por- tal).

Total ...... 3,011,250

Dated: January 14, 2021. as amended. The grant applications Drive, Rm. 2131B, Bethesda, MD 20892, (301) Sherrette A. Funn, and/or contract proposals and the 827–8231, [email protected]. Paperwork Reduction Act Reports Clearance discussions could disclose confidential (Catalogue of Federal Domestic Assistance Officer, Office of the Secretary. trade secrets or commercial property Program Nos. 93.865, Research for Mothers [FR Doc. 2021–01323 Filed 1–21–21; 8:45 am] such as patentable material, and and Children, National Institutes of Health, BILLING CODE 4150–04–P personal information concerning HHS) individuals associated with the grant Dated: January 14, 2021. applications, the disclosure of which Ronald J. Livingston, Jr., DEPARTMENT OF HEALTH AND would constitute a clearly unwarranted HUMAN SERVICES invasion of personal privacy. Program Analyst, Office of Federal Advisory Committee Policy. National Institutes of Health Name of Committee: National Institute of [FR Doc. 2021–01262 Filed 1–21–21; 8:45 am] Child Health and Human Development Initial BILLING CODE 4140–01–P Eunice Kennedy Shriver National Review Group; Obstetrics and Maternal-Fetal Institute of Child Health & Human Biology Subcommittee. Date: March 5, 2021. Development; Notice of Closed Time: 10:00 a.m. to 6:00 p.m. DEPARTMENT OF HEALTH AND Meeting Agenda: To review and evaluate grant HUMAN SERVICES applications. Pursuant to section 10(d) of the National Institutes of Health Federal Advisory Committee Act, as Place: National Institutes of Health, 6710B Rockledge Drive, Bethesda, MD 20817 amended, notice is hereby given of the (Video-Assisted Meeting). National Institute of Dental & following meeting. Contact Person: Luis E. Dettin, Ph.D., M.S., Craniofacial Research; Notice of The meeting will be closed to the M.A., Scientific Review Officer, Scientific Closed Meeting public in accordance with the Review Branch, Eunice Kennedy Shriver provisions set forth in sections National Institute of Child Health and Pursuant to section 10(d) of the 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Human Development, NIH, 6710B Rockledge Federal Advisory Committee Act, as

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amended, notice is hereby given of the Name of Committee: Biobehavioral and Place: National Institutes of Health, following meeting. Behavioral Processes Integrated Review Rockledge II, 6701 Rockledge Drive, The meeting will be closed to the Group; Adult Psychopathology and Disorders Bethesda, MD 20892 (Virtual Meeting). public in accordance with the of Aging Study Section. Contact Person: Marc Boulay, Ph.D., Date: February 11–12, 2021. Scientific Review Officer, Center for provisions set forth in sections Scientific Review, National Institutes of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Time: 9:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 3110, as amended. The grant applications and applications. MSC 7808, Bethesda, MD 20892, (301) 300– the discussions could disclose Place: National Institutes of Health, 6541, [email protected]. confidential trade secrets or commercial Rockledge II, 6701 Rockledge Drive, Name of Committee: Endocrinology, property such as patentable material, Bethesda, MD 20892 (Virtual Meeting). Metabolism, Nutrition and Reproductive and personal information concerning Contact Person: Benjamin Greenberg Sciences Integrated Review Group; individuals associated with the grant Shapero, Ph.D., Scientific Review Officer, Integrative and Clinical Endocrinology and applications, the disclosure of which Center for Scientific Review, National Reproduction Study Section. would constitute a clearly unwarranted Institutes of Health, 6701 Rockledge Drive, Date: February 18–19, 2021. invasion of personal privacy. Room 3182, MSC 7848, Bethesda, MD 20892, Time: 9:00 a.m. to 7:00 p.m. (301) 402–4786, [email protected]. Agenda: To review and evaluate grant Name of Committee: National Institute of Name of Committee: Center for Scientific applications. Dental and Craniofacial Research Special Review Special Emphasis Panel; Adult Place: National Institutes of Health, Emphasis Panel; Review of Institutional Rockledge II, 6701 Rockledge Drive, Training Grant Applications. Psychopathology and Disorders of Aging. Date: February 12, 2021. Bethesda, MD 20892 (Virtual Meeting). Date: March 2, 2021. Contact Person: Dianne Hardy, Ph.D., Time: 9:00 a.m. to 10:00 a.m. Time: 10:00 a.m. to 6:00 p.m. Scientific Review Officer, Center for Agenda: To review and evaluate grant Agenda: To review and evaluate grant Scientific Review, National Institutes of applications. applications. Health, 6701 Rockledge Drive, Room 6175, Place: National Institutes of Health, Place: National Institute of Dental and MSC 7892, Bethesda, MD 20892, 301–435– Rockledge II, 6701 Rockledge Drive, Craniofacial Research, National Institutes of 1154, [email protected]. Health, 6701 Democracy Boulevard, Suite Bethesda, MD 20892 (Virtual Meeting). Name of Committee: Cardiovascular and 664, Bethesda, MD 20892 (Virtual Meeting). Contact Person: Andrea B. Kelly, Ph.D., Contact Person: Jimok Kim, Ph.D., Scientific Review Officer, Center for Respiratory Sciences Integrated Review Scientific Review Officer, Scientific Review Scientific Review, National Institutes of Group; Clinical Integrative Cardiovascular Branch, National Institute of Dental and Health, 6701 Rockledge Drive, Room 3184, and Hematological Sciences Study Section. Craniofacial Research, National Institutes of MSC 7848, Bethesda, MD 20892, (301) 455– Date: February 18–19, 2021. Health, 6701 Democracy Boulevard, Suite 1761, [email protected]. Time: 9:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant 664, Bethesda, MD 20892, 301–402–8559, Name of Committee: Center for Scientific [email protected]. applications. Review Special Emphasis Panel; Hemostasis, Place: National Institutes of Health, (Catalogue of Federal Domestic Assistance Thrombosis, Blood Cells and Transfusion. Rockledge II, 6701 Rockledge Drive, Program Nos. 93.121, Oral Diseases and Date: February 16, 2021. Bethesda, MD 20892 (Virtual Meeting). Disorders Research, National Institutes of Time: 10:00 a.m. to 3:00 p.m. Contact Person: Margaret Chandler, Ph.D., Health, HHS) Agenda: To review and evaluate grant Scientific Review Officer, Center for Dated: January 14, 2021. applications. Scientific Review, National Institutes of Place: National Institutes of Health, Melanie J. Pantoja, Health, 6701 Rockledge Drive, Room 4126, Rockledge II, 6701 Rockledge Drive, Program Analyst, Office of Federal Advisory MSC 7814, Bethesda, MD 20892, (301) 435– Bethesda, MD 20892 (Virtual Meeting). 1743, [email protected]. Committee Policy. Contact Person: Katherine M. Malinda, Name of Committee: Infectious Diseases [FR Doc. 2021–01264 Filed 1–21–21; 8:45 am] Ph.D., Scientific Review Officer, Center for and Microbiology Integrated Review Group; BILLING CODE 4140–01–P Scientific Review, National Institutes of Cellular and Molecular Immunology—A Health, 6701 Rockledge Drive, Room 4140, Study Section. MSC 7814, Bethesda, MD 20892, 301–435– Date: February 18–19, 2021. 0912, [email protected]. DEPARTMENT OF HEALTH AND Time: 9:30 a.m. to 5:00 p.m. HUMAN SERVICES Name of Committee: Population Sciences Agenda: To review and evaluate grant and Epidemiology Integrated Review Group; applications. National Institutes of Health Cancer, Heart, and Sleep Epidemiology B Place: National Institutes of Health, Study Section. Rockledge II, 6701 Rockledge Drive, Center for Scientific Review; Notice of Date: February 18–19, 2021. Bethesda, MD 20892 (Virtual Meeting). Closed Meetings Time: 8:00 a.m. to 6:00 p.m. Contact Person: Mohammad Samiul Alam, Agenda: To review and evaluate grant Ph.D., Scientific Review Officer, Center for Pursuant to section 10(d) of the applications. Scientific Review, National Institutes of Federal Advisory Committee Act, as Place: National Institutes of Health, 6701 Health, 6701 Rockledge Drive, Room 809D, amended, notice is hereby given of the Rockledge Drive, Bethesda, MD 20892 Bethesda, MD 20892, (301) 435–1199, following meetings. (Virtual Meeting). [email protected]. The meetings will be closed to the Contact Person: Gianina Ramona Name of Committee: Biology of public in accordance with the Dumitrescu, Ph.D., MPH, Scientific Review Development and Aging Integrated Review provisions set forth in sections Officer, Center for Scientific Review, Group; Developmental Therapeutics Study 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., National Institutes of Health, 6701 Rockledge Section. as amended. The grant applications and Drive, Room 4193–C, Bethesda, MD 28092, Date: February 18–19, 2021. 301–827–0696, [email protected]. the discussions could disclose Time: 9:30 a.m. to 7:30 p.m. confidential trade secrets or commercial Name of Committee: Risk, Prevention and Agenda: To review and evaluate grant Health Behavior Integrated Review Group; property such as patentable material, applications. Social Psychology, Personality and Place: National Institutes of Health, and personal information concerning Interpersonal Processes Study Section. Rockledge II, 6701 Rockledge Drive, individuals associated with the grant Date: February 18–19, 2021. Bethesda, MD 20892 (Virtual Meeting). applications, the disclosure of which Time: 9:00 a.m. to 6:00 p.m. Contact Person: Nicholas J. Donato, Ph.D., would constitute a clearly unwarranted Agenda: To review and evaluate grant Scientific Review Officer, Center for invasion of personal privacy. applications. Scientific Review, National Institutes of

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Health, 6701 Rockledge Drive, Room 4040, Agenda: To review and evaluate grant Date: February 18–19, 2021. Bethesda, MD 20892, 301–827–4810, applications. Time: 9:00 a.m. to 6:30 p.m. [email protected]. Place: National Institutes of Health, Agenda: To review and evaluate grant Name of Committee: Center for Scientific Rockledge II, 6701 Rockledge Drive, applications. Review Special Emphasis Panel; Bethesda, MD 20892 (Virtual Meeting). Place: National Institutes of Health, 6701 Fellowships: Cell Biology, Developmental Contact Person: Mary Custer, Ph.D., Rockledge Drive, Bethesda, MD 20892 Biology, and Bioengineering. Scientific Review Officer, Center for (Virtual Meeting). Date: February 18–19, 2021. Scientific Review, National Institutes of Contact Person: Wei-Qin Zhao, Ph.D., Time: 9:30 a.m. to 6:00 p.m. Health, 6701 Rockledge Drive, Room 4148, Scientific Review Officer, Center for Agenda: To review and evaluate grant MSC 7850, Bethesda, MD 20892, (301) 435– Scientific Review, National Institutes of applications. 1164, [email protected]. Health, 6701 Rockledge Drive, Room 5181, Place: National Institutes of Health, 6701 (Catalogue of Federal Domestic Assistance MSC 7846, Bethesda, MD 20892–7846, 301– Rockledge Drive, Bethesda, MD 20892 Program Nos. 93.306, Comparative Medicine; 827–7238, [email protected]. (Virtual Meeting). 93.333, Clinical Research, 93.306, 93.333, Name of Committee: Brain Disorders and Contact Person: Raj K. Krishnaraju, Ph.D., 93.337, 93.393–93.396, 93.837–93.844, Clinical Neuroscience Integrated Review Scientific Review Officer, Center for 93.846–93.878, 93.892, 93.893, National Group; Aging Systems and Geriatrics Study Scientific Review, National Institutes of Institutes of Health, HHS) Section. Date: February 18–19, 2021. Health, 6701 Rockledge Drive, Room 6190, Dated: January 14, 2021. MSC 7804, Bethesda, MD 20892, (301) 435– Time: 9:00 a.m. to 5:00 p.m. 1047, [email protected]. Ronald J. Livingston, Jr., Agenda: To review and evaluate grant Name of Committee: Immunology Program Analyst, Office of Federal Advisory applications. Place: National Institutes of Health, 6701 Integrated Review Group; Transplantation, Committee Policy. Rockledge Drive, Bethesda, MD 20892 Tolerance, and Tumor Immunology Study [FR Doc. 2021–01263 Filed 1–21–21; 8:45 am] (Virtual Meeting). Section. BILLING CODE 4140–01–P Contact Person: Inese Z Beitins, MD. Date: February 18–19, 2021. Scientific Review Officer. Center for Time: 9:30 a.m. to 5:00 p.m. Scientific Review. National Institutes of Agenda: To review and evaluate grant DEPARTMENT OF HEALTH AND Health, 6701 Rockledge Drive, Room 6152, applications. HUMAN SERVICES MSC 7892. Bethesda, MD 20892. 301–435– Place: National Institutes of Health, 1034. [email protected]. Rockledge II, 6701 Rockledge Drive, National Institutes of Health Bethesda, MD 20892 (Virtual Meeting). Name of Committee: Genes, Genomes, and Genetics Integrated Review Group; Contact Person: Alok Mulky, Ph.D., Center for Scientific Review; Notice of Scientific Review Officer, Center for Prokaryotic Cell and Molecular Biology Scientific Review, National Institutes of Closed Meetings Study Section. Health, 6701 Rockledge Drive, Room 4203, Date: February 18, 2021. Pursuant to section 10(d) of the Time: 10:00 a.m. to 7:00 p.m. Bethesda, MD 20892, (301) 435–3566, Federal Advisory Committee Act, as [email protected]. Agenda: To review and evaluate grant amended, notice is hereby given of the applications. Name of Committee: Cell Biology following meetings. Place: National Institutes of Health, Integrated Review Group; Biology and The meetings will be closed to the Rockledge II, 6701 Rockledge Drive, Development of the Eye Study Section. public in accordance with the Bethesda, MD 20892 (Virtual Meeting). Date: February 18–19, 2021. Contact Person: Elena Smirnova, Ph.D., Time: 10:00 a.m. to 5:00 p.m. provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Scientific Review Officer, Center for Agenda: To review and evaluate grant Scientific Review, National Institutes of applications. as amended. The grant applications and Health, 6701 Rockledge Drive, Room 5187, Place: National Institutes of Health, the discussions could disclose MSC 7840, Bethesda, MD 20892, 301–357– Rockledge II, 6701 Rockledge Drive, confidential trade secrets or commercial 9112, [email protected]. Bethesda, MD 20892 (Virtual Meeting). property such as patentable material, Name of Committee: Cardiovascular and Contact Person: Thomas Beres, Ph.D., and personal information concerning Respiratory Sciences Integrated Review Scientific Review Officer, Center for individuals associated with the grant Group; Lung Injury, Repair, and Remodeling Scientific Review, National Institutes of Study Section. Health, 6701 Rockledge Drive, Room 5148, applications, the disclosure of which Date: February 22–23, 2021. MSC 7840, Bethesda, MD 20892, 301–435– would constitute a clearly unwarranted Time: 8:00 a.m. to 6:00 p.m. 1175, [email protected]. invasion of personal privacy. Agenda: To review and evaluate grant Name of Committee: Integrative, Name of Committee: Brain Disorders and applications. Functional and Cognitive Neuroscience Clinical Neuroscience Integrated Review Place: National Institutes of Health, Integrated Review Group; Learning, Memory Group; Chronic Dysfunction and Integrative Rockledge II, 6701 Rockledge Drive, and Decision Neuroscience Study Section. Neurodegeneration Study Section. Bethesda, MD 20892 (Virtual Meeting). Date: February 18–19, 2021. Date: February 16–17, 2021. Contact Person: Ghenima Dirami, Ph.D., Time: 10:00 a.m. to 6:00 p.m. Time: 9:00 a.m. to 7:00 p.m. Scientific Review Officer, Center for Agenda: To review and evaluate grant Agenda: To review and evaluate grant Scientific Review, National Institutes of applications. applications. Health, 6701 Rockledge Drive, Room 4122, Place: National Institutes of Health, Place: National Institutes of Health, 6701 MSC 7814, Bethesda, MD 20892, 240–498– Rockledge II, 6701 Rockledge Drive, Rockledge Drive, Bethesda, MD 20892 7546, [email protected]. Bethesda, MD 20892 (Virtual Meeting). (Virtual Meeting). Name of Committee: Oncology 1-Basic Contact Person: Roger Janz, Ph.D., Contact Person: Jenny R Browning, Ph.D., Translational Integrated Review Group; Scientific Review Officer, Center for Scientific Review Officer, Center for Cancer Genetics Study Section. Scientific Review, National Institutes of Scientific Review, National Institutes of Date: February 22–23, 2021. Health, 6701 Rockledge Drive, Bethesda, MD Health, 6701 Rockledge Drive, Rm. 5207, Time: 8:00 a.m. to 5:00 p.m. 20892, [email protected]. Bethesda, MD 20892, (301) 402–8197, Agenda: To review and evaluate grant Name of Committee: Molecular, Cellular [email protected]. applications. and Developmental Neuroscience Integrated Name of Committee: Brain Disorders and Place: National Institutes of Health, Review Group; Drug Discovery for the Clinical Neuroscience Integrated Review Rockledge II, 6701 Rockledge Drive, Nervous System Study Section. Group; Neural Basis of Psychopathology, Bethesda, MD 20892 (Virtual Meeting). Date: February 18–19, 2021. Addictions and Sleep Disorders Study Contact Person: Juraj Bies, Ph.D., Scientific Time: 10:00 a.m. to 5:00 p.m. Section. Review Officer, Center for Scientific Review,

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National Institutes of Health, 6701 Rockledge Time: 9:30 a.m. to 6:00 p.m. (Catalogue of Federal Domestic Assistance Drive, Room 4158, MSC 7806, Bethesda, MD Agenda: To review and evaluate grant Program Nos. 93.866, National Institute of 20892, 301–435–1256, [email protected]. applications. Biomedical Imaging and Bioengineering, Name of Committee: Vascular and Place: National Institutes of Health, National Institutes of Health, HHS) Hematology Integrated Review Group; Rockledge II, 6701 Rockledge Drive, Dated: January 14, 2021. Bethesda, MD 20892 (Virtual Meeting). Integrative Vascular Physiology and Ronald J. Livingston, Jr., Pathology Study Section. Contact Person: Michael L Bloom, Ph.D., Date: February 22–23, 2021. Scientific Review Officer, Center for Program Analyst, Office of Federal Advisory Time: 9:00 a.m. to 6:00 p.m. Scientific Review, National Institutes of Committee Policy. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 6187, [FR Doc. 2021–01266 Filed 1–21–21; 8:45 am] applications. MSC 7804, Bethesda, MD 20892, 301–451– BILLING CODE 4140–01–P Place: National Institutes of Health, 0132, [email protected]. Rockledge II, 6701 Rockledge Drive, (Catalogue of Federal Domestic Assistance Bethesda, MD 20892 (Virtual Meeting). Program Nos. 93.306, Comparative Medicine; DEPARTMENT OF HEALTH AND Contact Person: Bukhtiar H Shah, DVM, 93.333, Clinical Research, 93.306, 93.333, HUMAN SERVICES MS, Ph.D., Scientific Review Officer, 93.337, 93.393–93.396, 93.837–93.844, Vascular and Hematology IRG, Center for 93.846–93.878, 93.892, 93.893, National National Institutes of Health Scientific Review, National Institutes of Institutes of Health, HHS) Health, 6701 Rockledge Drive, Room 4120, Dated: January 14, 2021. National Institute of Mental Health; MSC 7802, Bethesda, MD 20892, (301) 806– Notice of Closed Meetings 7314, [email protected]. Melanie J. Pantoja, Name of Committee: Bioengineering Program Analyst, Office of Federal Advisory Pursuant to section 10(d) of the Sciences & Technologies Integrated Review Committee Policy. Federal Advisory Committee Act, as Group; Gene and Drug Delivery Systems [FR Doc. 2021–01261 Filed 1–21–21; 8:45 am] amended, notice is hereby given of the Study Section. BILLING CODE 4140–01–P following meetings. Date: February 22–23, 2021. The meetings will be closed to the Time: 9:00 a.m. to 6:00 p.m. public in accordance with the Agenda: To review and evaluate grant applications. DEPARTMENT OF HEALTH AND provisions set forth in sections Place: National Institutes of Health, HUMAN SERVICES 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Rockledge II, 6701 Rockledge Drive, as amended. The grant applications and Bethesda, MD 20892 (Virtual Meeting). National Institutes of Health the discussions could disclose Contact Person: David R Filpula, Ph.D., confidential trade secrets or commercial National Institute of Biomedical Scientific Review Officer, Center for property such as patentable material, Imaging and Bioengineering; Notice of Scientific Review, National Institutes of and personal information concerning Closed Meeting Health, 6701 Rockledge Drive, Room 6181, individuals associated with the grant MSC 7892, Bethesda, MD 20892, 301–435– 2902, [email protected]. Pursuant to section 10(d) of the applications, the disclosure of which would constitute a clearly unwarranted Name of Committee: Healthcare Delivery Federal Advisory Committee Act, as and Methodologies Integrated Review Group; amended, notice is hereby given of a invasion of personal privacy. Health Promotion in Communities Study meeting of the National Institute of Name of Committee: National Institute of Section. Biomedical Imaging and Bioengineering Mental Health Special Emphasis Panel; Post- Acute Interventions for the Treatment of Date: February 22–23, 2021. Special Emphasis Panel. Time: 9:00 a.m. to 6:00 p.m. Anorexia Nervosa (R34). Agenda: To review and evaluate grant The meetings will be closed to the Date: February 16, 2021. applications. public in accordance with the Time: 12:00 p.m. to 2:00 p.m. Place: National Institutes of Health, provisions set forth in sections Agenda: To review and evaluate grant Rockledge II, 6701 Rockledge Drive, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications. Bethesda, MD 20892 (Virtual Meeting). Place: National Institutes of Health, as amended. The grant applications and Neuroscience Center, 6001 Executive Contact Person: Helena Eryam Dagadu, the discussions could disclose Boulevard, Rockville, MD 20852 (Telephone Ph.D., Scientific Review Officer, Center for confidential trade secrets or commercial Conference Call). Scientific Review, National Institute of property such as patentable material, Contact Person: Serena Chu, Ph.D., Health, 6701 Rockledge Drive, Room 3137, Scientific Review Officer, Division of Bethesda, MD 20892, 301–435–1266, and personal information concerning Extramural Activities, National Institute of [email protected]. individuals associated with the grant Mental Health, NIH, Neuroscience Center, Name of Committee: Infectious Diseases applications, the disclosure of which would constitute a clearly unwarranted 6001 Executive BLVD, Room 6000, MSC and Immunology A Integrated Review Group; 9606, Bethesda, MD 20852, 301–500–5829, Virology—B Study Section. invasion of personal privacy. [email protected]. Date: February 22–23, 2021. Name of Committee: National Institute of Name of Committee: National Institute of Time: 9:30 a.m. to 6:30 p.m. Biomedical Imaging and Bioengineering Mental Health Special Emphasis Panel; Agenda: To review and evaluate grant Special Emphasis Panel; P41 NCBIB Review BRAIN Initiative: Research on the Ethical applications. E–SEP. Implications of Advancements in Place: National Institutes of Health, Date: February 10–12, 2021. Neurotechnology and Brain Science (R01). Rockledge II, 6701 Rockledge Drive, Time: 9:30 a.m. to 5:00 p.m. Date: February 18, 2021. Bethesda, MD 20892 (Virtual Meeting). Agenda: To review and evaluate grant Time: 12:00 p.m. to 4:00 p.m. Contact Person: Neerja Kaushik-Basu, applications. Agenda: To review and evaluate grant Ph.D., Scientific Review Officer, Center for Place: National Institutes of Health, applications. Scientific Review, National Institutes of Democracy II, 6707 Democracy Blvd., Place: National Institutes of Health, 6100 Health, 6701 Rockledge Drive, Room 3198, Bethesda, MD 20892 (Virtual Meeting). Executive Boulevard, Rockville, MD 20852 MSC 7808, Bethesda, MD 20892, (301) 435– Contact Person: John P. Holden, Ph.D., (Telephone Conference Call). 1742, [email protected]. Scientific Review Officer, National Institute Contact Person: Rebecca Steiner Garcia, Name of Committee: Genes, Genomes, and of Biomedical Imaging and Bioengineering, Ph.D., Scientific Review Officer, Division of Genetics Integrated Review Group; Molecular National Institutes of Health, 6707 Extramural Activities, National Institute of Genetics A Study Section. Democracy Blvd., Suite 920, Bethesda, MD Mental Health, NIH Neuroscience, Center, Date: February 22, 2021. 20892, (301) 496–8775, [email protected]. 6001 Executive Blvd., Room 6149, MSC 9608,

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Bethesda, MD 20892–9608, 301–443–4525, Division of Extramural Activities, National provisions set forth in sections [email protected]. Cancer Institute, NIH, 9609 Medical Center 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., (Catalogue of Federal Domestic Assistance Drive, Room 7W238, Rockville, Maryland as amended. The grant applications and Program No. 93.242, Mental Health Research 20850, 240–276–6371, [email protected]. the discussions could disclose Grants, National Institutes of Health, HHS) Name of Committee: National Cancer confidential trade secrets or commercial Institute Special Emphasis Panel; SEP–3: Dated: January 14, 2021. Research Answers to NCI Provocative property such as patentable material, Melanie J. Pantoja, Questions. and personal information concerning Program Analyst, Office of Federal Advisory Date: March 19, 2021. individuals associated with the grant Committee Policy. Time: 10:00 a.m. to 4:00 p.m. applications, the disclosure of which [FR Doc. 2021–01269 Filed 1–21–21; 8:45 am] Agenda: To review and evaluate grant would constitute a clearly unwarranted applications. BILLING CODE 4140–01–P invasion of personal privacy. Place: National Cancer Institute Shady Name of Committee: Center for Scientific Grove, 9609 Medical Center Drive, Room Review Special Emphasis Panel; 7W634, Rockville, Maryland 20850 Collaborative Applications: Clinical Studies DEPARTMENT OF HEALTH AND (Telephone Conference Call). HUMAN SERVICES of Mental Illness. Contact Person: Michael E. Lindquist, Date: February 11, 2021. Ph.D., Scientific Review Officer, Research National Institutes of Health Time: 4:00 p.m. to 7:00 p.m. Programs Review Branch, Division of Agenda: To review and evaluate grant Extramural Activities, National Cancer National Cancer Institute; Notice of applications. Institute, NIH, 9609 Medical Center Drive, Place: National Institutes of Health, Closed Meetings Room 7W634, Rockville, MD 20850, 240– Rockledge II, 6701 Rockledge Drive, 276–5735, [email protected]. Pursuant to section 10(d) of the Bethesda, MD 20892 (Virtual Meeting). Name of Committee: National Cancer Federal Advisory Committee Act, as Contact Person: Benjamin G. Shapero, Institute Special Emphasis Panel; SEP–4: Ph.D., Scientific Review Officer, Center for amended, notice is hereby given of the Research Answers to NCI Provocative Scientific Review, National Institutes of following meetings. Questions. Health, 6701 Rockledge Drive, Room 3182, The meetings will be closed to the Date: March 30, 2021. Bethesda, MD 20892, (301) 402–4786, public in accordance with the Time: 10:00 a.m. to 4:00 p.m. [email protected]. provisions set forth in sections Agenda: To review and evaluate grant Name of Committee: Emerging 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications. Technologies and Training Neurosciences as amended. The grant applications Place: National Cancer Institute Shady Integrated Review Group; Molecular and/or contract proposals and the Grove, 9609 Medical Center Drive, Room Neurogenetics Study Section. 7W120, Rockville, Maryland 20850 Date: February 18–19, 2021. discussions could disclose confidential (Telephone Conference Call). trade secrets or commercial property Time: 8:00 a.m. to 7:00 a.m. Contact Person: Majed M. Hamawy, Ph.D., Agenda: To review and evaluate grant such as patentable material, and Scientific Review Officer, Research Programs applications. personal information concerning Review Branch, Division of Extramural Place: National Institutes of Health, individuals associated with the grant Activities, National Cancer Institute, NIH, Rockledge II, 6701 Rockledge Drive, applications and/or contract proposals, 9609 Medical Center Drive, Room 7W120, Bethesda, MD 20892 (Virtual Meeting). the disclosure of which would Rockville, Maryland 20850, 240–276–6457, Contact Person: Mary G. Schueler, Ph.D., constitute a clearly unwarranted [email protected]. Scientific Review Officer, Center for invasion of personal privacy. (Catalogue of Federal Domestic Assistance Scientific Review, National Institutes of Program Nos. 93.392, Cancer Construction; Health, 6701 Rockledge Drive, Room 5214, Name of Committee: National Cancer 93.393, Cancer Cause and Prevention MSC 7846, Bethesda, MD 20892, 301–915– Institute Special Emphasis Panel; TEP–13: Research; 93.394, Cancer Detection and 6301, [email protected]. Chemopreventive Agent Delivery. Diagnosis Research; 93.395, Cancer Name of Committee: Digestive, Kidney and Date: March 4, 2021. Treatment Research; 93.396, Cancer Biology Urological Systems Integrated Review Group; Time: 10:00 a.m. to 4:00 p.m. Research; 93.397, Cancer Centers Support; Kidney and Urological Systems Function and Agenda: To review and evaluate contract 93.398, Cancer Research Manpower; 93.399, Dysfunction Study Section. proposals. Cancer Control, National Institutes of Health, Date: February 18–19, 2021. Place: National Cancer Institute Shady HHS) Time: 8:00 a.m. to 6:00 p.m. Grove, 9609 Medical Center Drive, Room Dated: January 14, 2021. Agenda: To review and evaluate grant 7W238, Rockville, Maryland 20850 applications. (Telephone Conference Call). Melanie J. Pantoja, Place: National Institutes of Health, Contact Person: Jeffrey E. DeClue, Ph.D., Program Analyst, Office of Federal Advisory Rockledge II, 6701 Rockledge Drive, Scientific Review Officer, Research Committee Policy. Bethesda, MD 20892 (Virtual Meeting). Technology and Contract Review Branch, [FR Doc. 2021–01260 Filed 1–21–21; 8:45 am] Contact Person: Ganesan Ramesh, Ph.D., Division of Extramural Activities, National Scientific Review Officer, Center for BILLING CODE 4140–01–P Cancer Institute, NIH, 9609 Medical Center Scientific Review, National Institutes of Drive, Room 7W238, Rockville, Maryland Health, 6701 Rockledge Drive, Room 2182 20850, 240–276–6371, [email protected]. MSC 7818, Bethesda, MD 20892, 301–827– Name of Committee: National Cancer DEPARTMENT OF HEALTH AND 5467, [email protected]. Institute Special Emphasis Panel; IMAT HUMAN SERVICES Name of Committee: Immunology Biospecimen Science. Integrated Review Group; Clinical Research Date: March 17, 2021. National Institutes of Health and Field Studies of Infectious Diseases Time: 10:00 a.m. to 3:00 p.m. Study Section. Agenda: To review and evaluate grant Center for Scientific Review; Notice of Date: February 18–19, 2021. applications. Closed Meetings Time: 9:00 a.m. to 6:00 p.m. Place: National Cancer Institute Shady Pursuant to section 10(d) of the Agenda: To review and evaluate grant Grove, 9609 Medical Center Drive, Room applications. 7W238, Rockville, Maryland 20850 Federal Advisory Committee Act, as Place: National Institutes of Health, (Telephone Conference Call). amended, notice is hereby given of the Rockledge II, 6701 Rockledge Drive, Contact Person: Jeffrey E. DeClue, Ph.D., following meetings. Bethesda, MD 20892 (Virtual Meeting). Scientific Review Officer, Research The meetings will be closed to the Contact Person: Pauline Cupit, Ph.D., Technology and Contract Review Branch, public in accordance with the Scientific Review Officer, Center for

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Scientific Review, National Institute of Date: February 18–19, 2021. Scientific Review, National Institutes of Health, 6701 Rockledge, Drive Bethesda, MD Time: 9:00 a.m. to 7:30 p.m. Health, Bethesda, MD 20892, (301) 435–1222, 20892, (301) 435–0000, cupitcunninghpm@ Agenda: To review and evaluate grant [email protected]. mail.nih.gov applications. Name of Committee: Center for Scientific Place: National Institutes of Health, Name of Committee: Musculoskeletal, Oral Rockledge II, 6701 Rockledge Drive, Review Special Emphasis Panel; Learning, and Skin Sciences Integrated Review Group; Bethesda, MD 20892 (Virtual Meeting). Memory and Decision Neuroscience. Skeletal Muscle and Exercise Physiology Contact Person: Joseph Thomas Peterson, Date: February 18, 2021. Study Section. Ph.D., Scientific Review Officer, Center for Time: 10:00 a.m. to 6:00 p.m. Date: February 18–19, 2021. Scientific Review, National Institutes of Agenda: To review and evaluate grant Time: 9:00 a.m. to 6:00 p.m. Health, 6701 Rockledge Drive, Room 4118, Agenda: To review and evaluate grant applications. MSC 7814, Bethesda, MD 20892, 301–408– Place: National Institutes of Health, applications. 9694, [email protected]. Place: National Institutes of Health, Rockledge II, 6701 Rockledge Drive, Rockledge II, 6701 Rockledge Drive, Name of Committee: Risk, Prevention and Bethesda, MD 20892 (Virtual Meeting). Bethesda, MD 20892 (Virtual Meeting). Health Behavior Integrated Review Group; Contact Person: Alexei Kondratyev, Ph.D., Lifestyle Change and Behavioral Health Contact Person: Richard Ingraham, Ph.D., Scientific Review Officer, Center for Scientific Review Officer, Center for Study Section. Date: February 18–19, 2021. Scientific Review, National Institutes of Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 5200, Health, 6701 Rockledge Drive, Room 4116, Time: 9:00 a.m. to 6:00 p.m. Agenda: To review and evaluate grant MSC 7846, Bethesda, MD 20892, 301–435– MSC 7814, Bethesda, MD 20892, 301–496– applications. 8551, [email protected]. 1785, [email protected]. Place: National Institutes of Health, 6701 Name of Committee: Infectious Diseases Name of Committee: Integrative, Rockledge Drive, Bethesda, MD 20892 and Microbiology Integrated Review Group; Functional and Cognitive Neuroscience (Virtual Meeting). Integrated Review Group; Auditory System Contact Person: Ahlishia Jnae Shipley, Bacterial Pathogenesis Study Section. Study Section. Ph.D., Scientific Review Officer, Center for Date: February 18–19, 2021. Date: February 18–19, 2021. Scientific Review, National Institute of Time: 10:00 a.m. to 5:00 p.m. Time: 9:00 a.m. to 4:00 p.m. Health, 6701 Rockledge Drive, Room 3222, Agenda: To review and evaluate grant Agenda: To review and evaluate grant MSC 7816, Bethesda, MD 20892, (301) 480– applications. applications. 8976, [email protected]. Place: National Institutes of Health, Place: National Institutes of Health, Name of Committee: Surgical Sciences, Rockledge II, 6701 Rockledge Drive, Rockledge II, 6701 Rockledge Drive, Biomedical Imaging and Bioengineering Bethesda, MD 20892 (Virtual Meeting). Bethesda, MD 20892 (Virtual Meeting). Integrated Review Group; Clinical Contact Person: Brian H. Scott, Ph.D., Contact Person: Marci Scidmore, Ph.D., Translational Imaging Science Study Section. Scientific Review Officer, National Institutes Scientific Review Officer, Center for Date: February 18–19, 2021. of Health, Center for Scientific Review, 6701 Scientific Review, National Institutes of Time: 9:00 a.m. to 7:00 p.m. Rockledge Drive, Bethesda, MD 20892, 301– Health, 6701 Rockledge Drive, Room 3192, Agenda: To review and evaluate grant 827–7490, [email protected]. applications. MSC 7808, Bethesda, MD 20892, 301–435– Name of Committee: Healthcare Delivery Place: National Institutes of Health, 1149, [email protected]. and Methodologies Integrated Review Group; Rockledge II, 6701 Rockledge Drive, Name of Committee: Center for Scientific Science of Implementation in Health and Bethesda, MD 20892 (Virtual Meeting). Review Special Emphasis Panel; R15 NIH Healthcare Study Section. Contact Person: Eleni Apostolos Liapi, MD, Research Enhancement Award (AREA and Date: February 18–19, 2021. Scientific Review Officer, Center for Time: 9:00 a.m. to 6:00 p.m. REAP) Review. Scientific Review, National Institutes of Date: February 18, 2021. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Bethesda, MD Time: 1:00 p.m. to 5:30 p.m. applications. 20817, 301–867–5309, [email protected]. Place: National Institutes of Health, Agenda: To review and evaluate grant Name of Committee: Biology of Rockledge II, 6701 Rockledge Drive, applications. Development and Aging Integrated Review Bethesda, MD 20892 (Virtual Meeting). Group; Mechanisms of Cancer Place: National Institutes of Health, Contact Person: Wenjuan Wang, Ph.D., Therapeutics—1 Study Section. Rockledge II, 6701 Rockledge Drive, Scientific Review Officer, Center for Date: February 18–19, 2021. Bethesda, MD 20892 (Virtual Meeting). Scientific Review, National Institute of Time: 9:30 a.m. to 7:00 p.m. Contact Person: Ola Mae Zack Howard, Health, 6701 Rockledge Drive, Room 3154, Agenda: To review and evaluate grant Ph.D., Scientific Review Officer, Center for Bethesda, MD 20892, (301) 480–8667, applications. [email protected]. Scientific Review, National Institutes of Place: National Institutes of Health, Health, 6701 Rockledge Drive, Room 4192, Name of Committee: Endocrinology, Rockledge II, 6701 Rockledge Drive, MSC 7806, Bethesda, MD 20892, 301–451– Metabolism, Nutrition and Reproductive Bethesda, MD 20892 (Virtual Meeting). 4467, [email protected]. Sciences Integrated Review Group; Nutrition Contact Person: Lambratu Rahman Sesay, and Metabolism in Health and Disease Study Ph.D., Scientific Review Officer, Center for (Catalogue of Federal Domestic Assistance Section. Scientific Review, National Institutes of Program Nos. 93.306, Comparative Medicine; Date: February 18–19, 2021. Health, 6701 Rockledge Drive, Room 6214, 93.333, Clinical Research, 93.306, 93.333, Time: 9:00 a.m. to 7:00 p.m. MSC 7804, Bethesda, MD 20892, 301–905– 93.337, 93.393–93.396, 93.837–93.844, Agenda: To review and evaluate grant 8294, [email protected]. 93.846–93.878, 93.892, 93.893, National applications. Name of Committee: Musculoskeletal, Oral Institutes of Health, HHS) Place: National Institutes of Health, and Skin Sciences Integrated Review Group; Rockledge II, 6701 Rockledge Drive, Musculoskeletal Rehabilitation Sciences Dated: January 14, 2021. Bethesda, MD 20892, (Virtual Meeting). Study Section. Ronald J. Livingston, Jr., Contact Person: Gregory S. Shelness, Ph.D., Date: February 18–19, 2021. Program Analyst, Office of Federal Advisory Scientific Review Officer, Center for Time: 10:00 a.m. to 3:00 p.m. Committee Policy. Scientific Review, National Institutes of Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 6156, applications. [FR Doc. 2021–01268 Filed 1–21–21; 8:45 am] Bethesda, MD 20892–7892, 301–755–4335, Place: National Institutes of Health, BILLING CODE 4140–01–P [email protected]. Rockledge II, 6701 Rockledge Drive, Name of Committee: Bioengineering Bethesda, MD 20892 (Virtual Meeting). Sciences & Technologies Integrated Review Contact Person: Maria Nurminskaya, Ph.D., Group; Nanotechnology Study Section. Scientific Review Officer, Center for

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DEPARTMENT OF HOMELAND effective on June 1, 2009, that Border Protection (CBP) the authority to SECURITY implemented the plan known as the designate certain documents as Western Hemisphere Travel Initiative acceptable border crossing documents U.S. Customs and Border Protection (WHTI) at U.S. land and sea ports of for persons arriving in the United States [CBP Dec. 21–03] entry. See 73 FR 18384 (the WHTI Land by land or sea from within the Western and Sea Final Rule). The rule amended Hemisphere, including certain United Western Hemisphere Travel Initiative: various sections in the Code of Federal States Native American tribal cards. See Designation of an Approved Native Regulations (CFR), including 8 CFR DHS Delegation Number 7105 (Revision American Tribal Card Issued by the 212.0, 212.1, and 235.1. The WHTI Land 00), dated January 16, 2009. and Sea Final Rule specifies the Muscogee (Creek) Nation as an Tribal Card Program Acceptable Document To Denote documents that U.S. citizens and Identity and Citizenship for Entry in the nonimmigrant aliens from Canada, The WHTI Land and Sea Final Rule United States at Land and Sea Ports of Bermuda, and Mexico are required to allows U.S. federally recognized Native Entry present when entering the United States American tribes to work with CBP to at land and sea ports of entry. enter into agreements to develop tribal AGENCY: U.S. Customs and Border Under the WHTI Land and Sea Final identification cards that can be Protection, DHS. Rule, one type of citizenship and designated as acceptable to establish ACTION: Notice. identity document that may be identity and citizenship when entering presented upon entry to the United the United States at land and sea ports SUMMARY: This notice announces that States at land and sea ports of entry of entry from contiguous territory or the Commissioner of U.S. Customs and from contiguous territory or adjacent adjacent islands. CBP has been working Border Protection is designating an islands 1 is a Native American tribal with various U.S. federally recognized approved Native American tribal card card that has been designated as an Native American tribes to facilitate the issued by the Muscogee (Creek) Nation acceptable document to denote identity development of such cards.3 As part of to U.S. and Canadian citizen tribal and citizenship by the Secretary of the process, CBP will enter into one or members as an acceptable travel Homeland Security, pursuant to section more agreements with a U.S. federally document for purposes of the Western 7209 of IRTPA. Specifically, 8 CFR recognized tribe that specify the Hemisphere Travel Initiative. The 235.1(e), as amended by the WHTI Land requirements for developing and issuing approved card may be used to denote and Sea Final Rule, provides that upon WHTI-compliant Native American tribal identity and citizenship of Muscogee designation by the Secretary of cards, including a testing and auditing (Creek) Nation members entering the Homeland Security, of a United States process to ensure that the cards are United States from contiguous territory qualifying tribal entity document as an produced and issued in accordance with or adjacent islands at land and sea ports acceptable document to denote identity the terms of the agreements. of entry. and citizenship for the purposes of After production of the cards in DATES: This designation will become entering the United States, Native accordance with the specified effective on January 22, 2021. Americans may be permitted to present requirements, and successful testing and FOR FURTHER INFORMATION CONTACT: tribal cards upon entering or seeking auditing by CBP of the cards and Adele Fasano, Executive Director, admission to the United States program, the Secretary of Homeland Planning, Program Analysis, and according to the terms of the voluntary Security or the Commissioner of CBP Evaluation, Office of Field Operations, agreement entered between the may designate the Native American U.S. Customs and Border Protection, via Secretary of Homeland Security and the tribal card as an acceptable WHTI- email at [email protected]. tribe. It provides that the Secretary of compliant document for the purpose of SUPPLEMENTARY INFORMATION: Homeland Security will announce, by establishing identity and citizenship publication of a notice in the Federal when entering the United States by land Background Register, documents designated under or sea from contiguous territory or The Western Hemisphere Travel this paragraph. It further provides that adjacent islands. Such designation will Initiative a list of the documents designated under be announced by publication of a notice this section will also be made available Section 7209 of the Intelligence in the Federal Register. More to the public. information about WHTI-compliant Reform and Terrorism Prevention Act of A United States qualifying tribal documents is available at www.cbp.gov/ 2004 (IRTPA), Public Law 108–458, as entity is defined as a tribe, band, or travel. amended, required the Secretary of other group of Native Americans Homeland Security (Secretary), in formally recognized by the United The Pascua Yaqui Tribe of Arizona consultation with the Secretary of State, States Government which agrees to meet became the first Native American tribe to develop and implement a plan to WHTI document standards. See 8 CFR to have its Native American tribal card require U.S. citizens and individuals for 212.1.2 Native American tribal cards are designated as a WHTI-compliant whom documentation requirements also referenced in 8 CFR 235.1(b), which document by the Commissioner of CBP. have previously been waived under lists the documents U.S. citizens may This designation was announced in a section 212(d)(4)(B) of the Immigration use to establish identity and citizenship notice published in the Federal Register and Nationality Act (8 U.S.C. when entering the United States. See 8 on June 9, 2011 (76 FR 33776). 1182(d)(4)(B)) to present a passport or CFR 235.1(b)(7). Subsequently, the Commissioner of CBP other document or combination of The Secretary has delegated to the announced the designation of several documents as the Secretary deems Commissioner of U.S. Customs and other Native American tribal cards as sufficient to denote identity and WHTI- compliant documents. See, e.g., citizenship for all travel into the United 1 ‘‘Adjacent islands’’ is defined in 8 CFR 212.0 as the Puyallup Tribe of Indians, 84 FR States. See 8 U.S.C. 1185 note. On April ‘‘Bermuda and the islands located in the Caribbean Sea, except Cuba.’’ This definition applies to 8 CFR 3 The Native American tribal cards qualifying to 3, 2008, the Department of Homeland 212.1 and 235.1. be a WHTI-compliant document for border crossing Security (DHS) and the Department of 2 This definition applies to 8 CFR 212.1 and purposes are commonly referred to as ‘‘Enhanced State promulgated a joint final rule, 235.1. Tribal Cards’’ or ‘‘ETCs.’’

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67278 (December 9, 2019); the tribal cards as a WHTI-compliant Indian Tribes or Native Hawaiian Swinomish Indian Tribal Community, document is conditional on compliance organizations, has determined that the 84 FR 70984 (December 26, 2019); and with the MOA and related agreements. cultural items listed in this notice meet the Confederated Tribes of the Colville Acceptance and use of the WHTI- the definition of sacred objects. Lineal Reservation, 85 FR 31796 (May 27, compliant Native American tribal cards descendants or representatives of any 2020). is voluntary for tribe members. If an Indian Tribe or Native Hawaiian individual is denied a WHTI-compliant Muscogee (Creek) Nation WHTI- organization not identified in this notice Native American tribal card, he or she that wish to claim these cultural items Compliant Native American Tribal Card may still apply for a passport or other Program should submit a written request to the WHTI-compliant document. Museum of Riverside. If no additional The Muscogee (Creek) Nation has Designation claimants come forward, transfer of voluntarily established a program to control of the cultural items to the lineal develop a WHTI-compliant Native This notice announces that the descendants, Indian Tribes, or Native American tribal card that denotes Commissioner of CBP designates the Hawaiian organizations stated in this identity and U.S. or Canadian Native American tribal card issued by notice may proceed. citizenship. On March 28, 2016, CBP the Muscogee (Creek) Nation in DATES: Lineal descendants or and the Muscogee (Creek) Nation accordance with the MOA and all representatives of any Indian Tribe or entered into a Memorandum of related agreements between the tribe Native Hawaiian organization not Agreement (MOA) to develop, issue, and CBP as an acceptable WHTI- identified in this notice that wish to test, and evaluate tribal cards to be used compliant document pursuant to section claim these cultural items should for border crossing purposes. Pursuant 7209 of the IRTPA and 8 CFR 235.1(e). submit a written request with to this MOA, the cards are issued to In accordance with these provisions, the information in support of the claim to members of the Muscogee (Creek) approved card, if valid and lawfully the Museum of Riverside at the address Nation who can establish identity, tribal obtained, may be used to denote in this notice by February 22, 2021. membership, and U.S. or Canadian identity and U.S. or Canadian citizenship. The cards incorporate citizenship of Muscogee (Creek) Nation ADDRESSES: Robyn G. Peterson, Museum physical security features acceptable to members for the purposes of entering Director, Ph.D., Museum of Riverside, CBP as well as facilitative technology the United States from contiguous 3580 Mission Inn Avenue, Riverside, allowing for electronic validation by territory or adjacent islands at land and CA 92501, telephone (951) 826–5792, CBP of identity, citizenship, and tribal sea ports of entry. email [email protected]. membership.4 The Senior Official Performing the SUPPLEMENTARY INFORMATION: Notice is CBP has tested the cards developed by Duties of the Commissioner Mark A. here given in accordance with the the Muscogee (Creek) Nation pursuant Morgan, having designated the Native Native American Graves Protection and to the above MOA and related American tribal card issued by the Repatriation Act (NAGPRA), 25 U.S.C. agreements, and has performed an audit Muscogee (Creek) Nation as an 3005, of the intent to repatriate cultural of the tribe’s card program. On the basis acceptable WHTI-compliant document items under the control of the Museum of these tests and audit, CBP has pursuant to section 7209 of the IRTPA of Riverside, Riverside, CA, that meet determined that the Native American and 8 CFR 235.1(e), and having the definition of sacred objects under 25 tribal cards meet the requirements of reviewed and approved this notice, is U.S.C. 3001. section 7209 of the IRTPA and are delegating the authority to electronically This notice is published as part of the acceptable documents to denote identity sign this notice to Robert F. Altneu, who National Park Service’s administrative and citizenship for purposes of entering is the Director of the Regulations and responsibilities under NAGPRA, 25 the United States at land and sea ports Disclosure Law Division for CBP, for U.S.C. 3003(d)(3). The determinations in of entry from contiguous territory or purposes of publication in the Federal this notice are the sole responsibility of adjacent islands.5 CBP’s continued Register. the museum, institution, or Federal acceptance of the Native American agency that has control of the Native Dated: January 15, 2021. American cultural items. The National Robert F. Altneu, 4 CBP and the Muscogee (Creek) Nation entered Park Service is not responsible for the into a Service Level Agreement (SLA) on April 27, Director, Regulations & Disclosure Law determinations in this notice. 2017, concerning technical requirements and Division, Regulations & Rulings, Office of support for the production, issuance, and Trade, U.S. Customs and Border Protection. History and Description of the Cultural verification of the Native American tribal cards. [FR Doc. 2021–01401 Filed 1–19–21; 8:45 am] Items CBP and the Muscogee (Creek) Nation also entered into an Interconnection Security Agreement in BILLING CODE 9111–14–P In 1925, 20 Hupa sacred items November 2016, with respect to individual and affiliated with the Hoopa Valley Tribe organizational security responsibilities for the protection and handling of unclassified were donated to the Museum of information. DEPARTMENT OF THE INTERIOR Riverside as part of the institution’s 5 The Native American tribal card issued by the founding. In 1951 and 1952, three Muscogee (Creek) Nation may not, by itself, be used National Park Service additional Hupa sacred objects were by Canadian citizen tribal members to establish that they meet the requirements of section 289 of the [NPS–WASO–NAGPRA–NPS0031328; donated by two separate individuals. Immigration and Nationality Act (INA) [8 U.S.C. PPWOCRADN0–PCU00RP14.R50000] None of the donors provided the 1359]. INA § 289 provides that nothing in this title Museum with information pertaining to shall be construed to affect the right of American Notice of Intent To Repatriate Cultural the objects’ provenience. According to Indians born in Canada to pass the borders of the Items: Museum of Riverside, Riverside, the donor records, the provenance of 14 United States, but such right shall extend only to CA persons who possess at least 50 per centum of blood (or 61%) of the Museum’s Hupa sacred of the American Indian race. While the tribal card AGENCY: National Park Service, Interior. objects was the Brizard Collection. This may be used to establish a card holder’s identity for collection is known to the Hoopa Valley purposes of INA § 289, it cannot, by itself, serve as ACTION: Notice. evidence of the card holder’s Canadian birth or that Tribe. The 23 objects include: One he or she possesses at least 50% American Indian SUMMARY: The Museum of Riverside, in string bag, four dance aprons, two dance blood, as required by INA § 289. consultation with the appropriate baskets, two dentalium strings, one

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dress, four hair ornaments, one DEPARTMENT OF THE INTERIOR ARKANSAS headband, four headdresses, one Washington County necklace, one pipe, and two purses. National Park Service Rieff’s Chapel Cemetery, West Pear Ln., The Museum has determined the Fayetteville, SG100006153 identity and cultural affiliation of the 23 [NPS–WASO–NRNHL–DTS#–31362; PPWOCRADI0, PCU00RP14.R50000] IOWA objects in consultation with Hoopa Polk County Valley Tribe representatives Cutcha National Register of Historic Places; Risling Baldy (member), Keduescha Notification of Pending Nominations Elmwood, The- The Oaks-The Birches, 2315 Lara-Colegrove (Tribal Historic and Related Actions Grand Ave., Des Moines, SG100006155 Preservation Officer), Byron Nelson, Jr. KENTUCKY (Chairman), and Sillischitawn S. AGENCY: National Park Service, Interior. Jefferson County Jackson (Curator, Hoopa Tribal ACTION: Notice. Museum). Hertel Pharmacy, 2565–2567 Bank St., Louisville, SG100006154 SUMMARY: The National Park Service is Determinations Made by the Museum of OHIO Riverside soliciting electronic comments on the significance of properties nominated Ashland County Officials of the Museum of Riverside before January 9, 2021, for listing or Arthur Street School, 416 Arthur St., have determined that: related actions in the National Register Ashland, SG100006147 of Historic Places. • Pursuant to 25 U.S.C. 3001(3)(C), Cuyahoga County DATES: Comments should be submitted the 23 cultural items described above Midtown Historic District, Perkins (south are specific ceremonial objects needed electronically by February 8, 2021. side), Chester, Euclid, Prospect, and by traditional Native American religious ADDRESSES: Comments are encouraged Carnegie (north side) Aves., roughly leaders for the practice of traditional to be submitted electronically to between I–90, East 27th, East 40th and East Native American religions by their National_Register_Submissions@ 55th Sts., Cleveland, SG100006160 present-day adherents. nps.gov with the subject line ‘‘Public Fulton County

• Pursuant to 25 U.S.C. 3001(2), there Comment on ‘‘property or proposed Fulton Lodge No. 248, 401 1⁄2 Main St., Delta, is a relationship of shared group district name, (County) State.’’ If you SG100006149 have no access to email you may send identity that can be reasonably traced Union County between the sacred objects and the them via U.S. Postal Service and all other carriers to the National Register of Partridge, Reuben L. House 245 West 7th St., Hoopa Valley Tribe, California. Historic Places, National Park Service, Marysville, SG100006161 Additional Requestors and Disposition 1849 C Street NW, MS 7228, Van Wert County Washington, DC 20240. Convoy Opera House-City Hall-Firehouse Lineal descendants or representatives SUPPLEMENTARY INFORMATION: Building, 111 South Main St., Convoy, of any Indian Tribe or Native Hawaiian The properties listed in this notice are being SG100006162 organization not identified in this notice considered for listing or related actions that wish to claim these cultural items Wood County in the National Register of Historic should submit a written request with Risingsun Town Hall and Opera House, 420 Places. Nominations for their Main St., Risingsun, SG100006150 information in support of the claim to consideration were received by the Robyn G. Peterson, Ph.D., Museum National Park Service before January 9, PENNSYLVANIA Director, Museum of Riverside, 3580 2021. Pursuant to Section 60.13 of 36 Perry County Mission Inn Avenue, Riverside, CA CFR part 60, comments are being Clark’s Ferry Tavern, 603 North Market St., 92501, telephone (951) 826–5792, email accepted concerning the significance of Duncannon, SG100006148 [email protected], by February the nominated properties under the PUERTO RICO 22, 2021. After that date, if no National Register criteria for evaluation. additional claimants have come Before including your address, phone Arecibo Municipality forward, transfer of ownership of the number, email address, or other Franklin Delano Roosevelt Graded School, sacred objects to the Hoopa Valley personal identifying information in your (Puerto Rico Reconstruction Tribe, California may proceed. comment, you should be aware that Administration MPS), Calle Oriente No. 218, Arecibo vicinity, MP100006152 The Museum of Riverside is your entire comment—including your responsible for notifying the Hoopa personal identifying information—may VIRGINIA Valley Tribe, California that this notice be made publicly available at any time. Botetourt County has been published. While you can ask us in your comment to withhold your personal identifying Glencoe, 1088 Poor Farm Rd., Fincastle vicinity, SG100006157 Dated: December 23, 2020. information from public review, we Melanie O’Brien, cannot guarantee that we will be able to Hanover County Manager, National NAGPRA Program. do so. Macmurdo House, 713 South Center St., [FR Doc. 2021–01338 Filed 1–21–21; 8:45 am] Nominations submitted by State or Ashland, SG100006158 BILLING CODE 4312–52–P Tribal Historic Preservation Officers: Lynchburg Independent City ARIZONA DeWitt-Wharton Manufacturing Company, 1701 12th St., Lynchburg, SG100006156 Pima County Broadmoor Historic District, Residential Prince William County subdivision south of Broadway Blvd. Mount Pleasant Baptist Church and between Tucson Blvd. and Country Club Cemetery, 15008 Lee Hwy., Gainesville, Rd., Tucson, SG100006151 SG100006159

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Authority: Section 60.13 of 36 CFR part 60. Repatriation Act (NAGPRA), 25 U.S.C. Nation; and The Osage Nation Dated: January 12, 2021. 3003, of the completion of an inventory (previously listed as Osage Tribe) Sherry A. Frear, of human remains and associated (hereafter referred to as ‘‘The Tribes’’). funerary objects under the control of the Chief, National Register of Historic Places/ History and Description of the Remains National Historic Landmarks Program. Mississippi Department of Archives and History, Jackson, MS. The human Prior to 1965, human remains [FR Doc. 2021–01336 Filed 1–21–21; 8:45 am] remains and associated funerary objects representing, at minimum, two BILLING CODE 4312–52–P were removed from the region of individuals were removed from an Mississippi north of the Yazoo and unspecified location in Northeast DEPARTMENT OF THE INTERIOR Yalobusha Rivers including DeSoto, Mississippi. The individuals came into Clay, Lafayette, Monroe, Panola, MDAH’s possession in 1964 by way of National Park Service Pontotoc, Quitman, Tate, Tunica, donation from R. DeMar Whitfield. No Union, and Webster counties. known individuals were identified. The [NPS–WASO–NAGPRA–NPS0031329; This notice is published as part of the one associated funerary object is one lot PPWOCRADN0–PCU00RP14.R50000] National Park Service’s administrative of ceramic sherds. responsibilities under NAGPRA, 25 Notice of Inventory Completion: MDAH has determined that these U.S.C. 3003(d)(3). The determinations in Mississippi Department of Archives human remains are Native American this notice are the sole responsibility of and History, Jackson, MS; Correction through circumstances of acquisition the museum, institution, or Federal and observation of biological markers AGENCY: National Park Service, Interior. agency that has control of the Native consistent with this ancestry. ACTION: Notice. American human remains and Circumstances of acquisition show that associated funerary objects. The these human remains are affiliated with SUMMARY: The Mississippi Department National Park Service is not responsible the pre-contact Woodland cultures that of Archives and History (MDAH) has for the determinations in this notice. are indigenous to this region of completed an inventory of human This notice corrects the minimum Mississippi. Present day Indian Tribes remains and associated funerary objects, number of individuals previously associated with pre-contact Woodland in consultation with the appropriate reported in a Notice of Inventory cultures include, but are not limited to, Indian Tribes or Native Hawaiian Completion published in the Federal The Tribes. Register on April 13, 2018 (83 FR organizations, and has determined that Up to 1991, human remains and 16121–16123, April 13, 2018); there is a cultural affiliation between the associated funerary objects were additional human remains were human remains and associated funerary removed from the following counties in discovered after publication and 207 objects and present-day Indian Tribes or Mississippi: Clay, Desoto, Lafayette, individuals are hereby corrected to 403 Native Hawaiian organizations. Lineal Monroe, Panola, Pontotoc, Quitman, individuals. This notice corrects the descendants or representatives of any Tate, Tunica, Union, and Webster. The number of funerary objects reported in Indian Tribe or Native Hawaiian following information regarding these the prior notice from 50 associated organization not identified in this notice individuals is organized by county. funerary objects to 83 lots of funerary that wish to request transfer of control In June 1990, human remains of these human remains and associated objects. Additional information received during ongoing consultations representing, at minimum, two funerary objects should submit a written individuals were removed from the request to the Mississippi Department of successfully affiliated all listed individuals previously identified as Brogan Village (22CL501b) site in Clay Archives and History. If no additional County, MS. No known individuals requestors come forward, transfer of culturally unidentifiable. The notice published in 2018 included the were identified. The three associated control of the human remains and funerary objects are one lot of ceramic associated funerary objects to the lineal following counties: Clay, DeSoto, Panola, and Tunica; this notice contains sherds, one lot of lithics, and one lot of descendants, Indian Tribes, or Native soil matrix. Hawaiian organizations stated in this additional counties not previously Beginning in 1962, human remains notice may proceed. reported including: Lafayette, Monroe, Pontotoc, Quitman, Tate, Union, and representing, at minimum, 76 DATES: Lineal descendants or Webster. Transfer of control of the items individuals were removed from the representatives of any Indian Tribe or in this correction notice has not following sites in DeSoto County, MS: Native Hawaiian organization not occurred. Cheatham (22DS514), Dogwood Ridge identified in this notice that wish to (22DS511), Edgefield Mounds request transfer of control of these Consultation (22DS509), Harris (22DS504), Irby human remains and associated funerary A detailed assessment of human (22DS516), Lake Cormorant (22DS501), objects should submit a written request remains was made by the Mississippi McKay’s Store (22DS506), Migva with information in support of the Department of Archives and History (22DS526), Shannon #2 (22DS519), request to the Mississippi Department of professional staff in consultation with Walls (22DS500), Walls/Harris Archives and History at the address in representatives of the Alabama- (22DS500/504), Woodlyn (22DS517) this notice by February 22, 2021. Coushatta Tribe of Texas (previously sites, and an unknown site. No known ADDRESSES: Meg Cook, Director of listed as Alabama-Coushatta Tribes of individuals were identified. The three Archaeology Collections, Mississippi Texas); Alabama-Quassarte Tribal associated funerary objects, removed Department of Archives and History, Town; Coushatta Tribe of Louisiana; from the Edgefield Mounds site, are one Museum Division, 222 North Street, Eastern Band of Cherokee Indians; lot of ceramic sherds, one lot of ceramic P.O. Box 571, Jackson, MS 39205, Miami Tribe of Oklahoma; Mississippi vessels, and one lot of soil matrix. telephone (601) 576–6927, email Band of Choctaw Indians; Quapaw At an unknown time prior to 1965, [email protected]. Nation (previously listed as The human remains representing, at SUPPLEMENTARY INFORMATION: Notice is Quapaw Tribe of Indians); The minimum, one individual were removed here given in accordance with the Chickasaw Nation; The Choctaw Nation from an unknown location in Lafayette Native American Graves Protection and of Oklahoma; The Muscogee (Creek) County, MS. No known individual was

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identified. No associated funerary coprolites, two lot of daub, one lot ear Determinations Made by the objects are present. plugs, five lots of faunal bone fragments, Mississippi Department of Archives At an undetermined time, human one lot flotation samples, one lot fired and History remains representing, at minimum, two clay, one lot of hammerstones, one lot Officials of the Mississippi individuals were removed from the of historic glass, two lots of historic Department of Archives and History Turner (22MO923) site in Monroe metal, four lots of lithics, one lot of have determined that: County, MS. No known individuals lithic bifaces, two lots of modified • Pursuant to 25 U.S.C. 3001(9), the were identified. No associated funerary faunal bone, one lot of otoliths, two lots objects are present. human remains described in this notice of projectile points, two lots of shell, In the late 1960s, human remains represent the physical remains of 403 representing, at minimum, 11 one lot of shell beads, one lot of shell individuals of Native American gorgets, three lots of soil matrix, two lots ancestry. individuals were removed from • McCarter Mounds (22PA502) and of unmodified stone, two lots of water- Pursuant to 25 U.S.C. 3001(3)(A), Dugger Bluff (22PA587) sites in Panola screened pit fill, and one lot of wolf the 83 objects described in this notice County, MS. No known individuals teeth. are reasonably believed to have been were identified. The eight associated In 1964, human remains representing, placed with or near individual human remains at the time of death or later as funerary objects are: One lot of ceramic at minimum, three individuals were part of the death rite or ceremony. sherds, one lot of charcoal, one lot of removed from the Ingomar Mounds • Pursuant to 25 U.S.C. 3001(2), there copper pan pipes, one lot of faunal bone (22UN500) site in Union County, MS. is a relationship of shared group remains, one lot of lithics, two lots of No known individuals were identified. soil matrix, and one lot of shell identity that can be reasonably traced No associated funerary objects are between the Native American human fragments. present. At an undetermined date before 1962, remains and associated funerary objects human remains representing, at In the 1930s, human remains and The Tribes. representing, at minimum, one minimum, one individual were removed Additional Requestors and Disposition from an unknown location in Pontotoc individual were removed from the G.H. County, MS. No known individual was Holland Mound (22WE502) site in Lineal descendants or representatives identified. No associated funerary Webster County, MS. No known of any Indian Tribe or Native Hawaiian objects are present. individual was identified. No associated organization not identified in this notice Beginning in the 1960s, human funerary objects are present. that wish to request transfer of control remains representing, at minimum, 87 of these human remains and associated individuals were removed from Shady The Mississippi Department of funerary objects should submit a written Grove (22QU525) and Tom Harris Archives and History has determined request with information in support of Mounds (22QU574) sites in Quitman that the human remains of each of these the request to Meg Cook, Director of County, MS. No known individuals individuals are Native American Archaeology Collections, Mississippi were identified. The 12 associated through the circumstances of Department of Archives and History, funerary objects include: One lot of acquisition, as well as through the Museum Division, 222 North Street, bone awls, one lot of botanical remains, observance of biological markers P.O. Box 571, Jackson, MS 39205, one lot of ceramic sherds, one lot of consistent with this ancestry. The telephone (601) 576–6927, email ceramic vessels, one lot charcoal, one circumstances of acquisition, including [email protected], by February 22, lot faunal bone remains, one lot of pit excavation notes and associated 2021. After that date, if no additional fill, one lot of limonite, one lot of funerary objects, show that these human requestors have come forward, transfer lithics, one lot of shell, one lot of soil remains are affiliated with the multiple of control of the human remains and matrix, and one lot of vessel contents. cultures that are indigenous to these associated funerary objects to The At an undetermined time, human areas of Mississippi. Individuals and Tribes may proceed. remains representing, at minimum, one associated funerary objects from the The Mississippi Department of individual were removed from an Archaic cultural period are represented Archives and History is responsible for unknown location in Tate County, MS. in sites from DeSoto, Monroe, Panola, notifying The Tribes that this notice has No known individual was identified. No Tunica, and Quitman Counties. been published. associated funerary objects are present. Individuals and associated funerary Dated: January 5, 2021. Beginning in 1966, human remains objects from the Woodland cultural Melanie O’Brien, representing, at minimum, 216 individuals were removed from the period are represented in sites from Manager, National NAGPRA Program. following sites in Tunica County: Clay, Lafayette, Panola, Quitman, [FR Doc. 2021–01340 Filed 1–21–21; 8:45 am] Austin (22TU549), Bonds Village Tunica, and Webster Counties. BILLING CODE 4312–52–P (22TU530), Boyd (22TU531), Dundee Individuals and associated funerary Mounds (22TU501), Evansville objects from the Mississippian cultural (22TU502), Flowers #3 (22TU518), period are represented in sites from DEPARTMENT OF THE INTERIOR DeSoto, Quitman, Tunica, and Union Hollywood Mounds (22TU500), Jepson National Park Service (22TU522), Mhoon Landing (22TU514), Counties. The unknown Pontotoc and and Norflett Mound (22TU519). No Tate County sites are not associated [NPS–WASO–NAGPRA–NPS0031351; known individuals were identified. The with a specified period of occupation, PPWOCRADN0–PCU00RP14.R50000] 56 associated funerary objects are: One but have been determined to be Native lot of bird talons, two lots of bone awl, American in ancestry. Notice of Intent To Repatriate Cultural one lot of bone needles, two lots of Items: Los Angeles County Museum of Present day Indian Tribes associated Art, Los Angeles, CA botanical material, one lot of celts, two with these cultures include, but are not lots of ceramic vessels, six lots of limited to The Tribes. AGENCY: National Park Service, Interior. ceramic sherds, three lots of charcoal, ACTION: Notice. one lot of clay beads, one lot of

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SUMMARY: The Los Angeles County Sotheby’s New York in 1991, cultural patrimony to the Central Museum of Art (LACMA), in whereupon it was separated from the Council of the Tlingit & Haida Indian consultation with Indian Tribes or Central Council of the Tlingit & Haida Tribes may proceed. Native Hawaiian organizations listed in Indian Tribes. In 1995, the item was The Los Angeles County Museum of this notice, has determined that the sold at a Sotheby’s auction to a private Art is responsible for notifying the cultural item listed in this notice meets collector. In April 2017, funds were Central Council of the Tlingit & Haida the definition of sacred object and object given to LACMA to purchase this Indian Tribes that this notice has been of cultural patrimony. Lineal cultural item from a private collector. published. descendants or representatives of any The item was accessioned by LACMA Dated: January 6, 2021. on August 8, 2017. Indian Tribe or Native Hawaiian Melanie O’Brien, organization not identified in this notice Based on consultation with the Manager, National NAGPRA Program. that wish to claim this cultural item Central Council of the Tlingit & Haida should submit a written request to the Indian Tribes, and archival research at [FR Doc. 2021–01337 Filed 1–21–21; 8:45 am] Los Angeles County Museum of Art. If the University of Washington and the BILLING CODE 4312–52–P no additional claimants come forward, Alaska State Museum, the Los Angeles transfer of control of the cultural item to County Museum of Art has determined DEPARTMENT OF THE INTERIOR the lineal descendants, Indian Tribes, or that this house screen is an integral part Native Hawaiian organizations stated in of rituals and ceremonies performed by National Park Service this notice may proceed. Tlingit traditional religious leaders of [NPS–WASO–NAGPRA–NPS0031299; DATES: Lineal descendants or the Thunderbird Clan. The cultural item PPWOCRADN0–PCU00RP14.R50000] representatives of any Indian Tribe or was identified by the auction house, academic experts in the study of Tlingit Native Hawaiian organization not Notice of Inventory Completion: U.S. identified in this notice that wish to culture, and traditional Tlingit cultural leaders as belonging to the Central Department of the Interior, National claim this cultural item should submit ¯ Council of the Tlingit & Haida Indian Park Service, Pu‘ukohola Heiau a written request with information in National Historic Site, Kamuela, HI support of the claim to the Los Angeles Tribes. County Museum of Art at the address in Determinations Made by the Los AGENCY: National Park Service, Interior. this notice by February 22, 2021. Angeles County Museum of Art ACTION: Notice. ADDRESSES: Jeffrey N. Blair, General The Los Angeles County Museum of SUMMARY: Counsel and Assistant Secretary, Los The U.S. Department of the Art has determined that: Interior, National Park Service, Angeles County Museum of Art, 5905 • Pursuant to 25 U.S.C. 3001(3)(C), Wilshire Boulevard, Los Angeles, CA Pu‘ukohola¯ Heiau National Historic Site the one cultural item described above is has completed an inventory of 90036, telephone (323) 857–6048, email a specific ceremonial object needed by [email protected]. associated funerary objects, in traditional Native American religious consultation with the appropriate SUPPLEMENTARY INFORMATION: Notice is leaders for the practice of traditional Indian Tribes or Native Hawaiian here given in accordance with the Native American religions by their organizations, and has determined that Native American Graves Protection and present-day adherents. • there is a cultural affiliation between the Repatriation Act (NAGPRA), 25 U.S.C. Pursuant to 25 U.S.C. 3001(3)(D), associated funerary objects and present- 3005, of the intent to repatriate a the one cultural item described above day Indian Tribes or Native Hawaiian cultural item under the control of the has ongoing historical, traditional, or organizations. Lineal descendants or Los Angeles County Museum of Art, Los cultural importance central to the representatives of any Indian Tribe or Angeles, CA, that meets the definition of Native American group or culture itself, Native Hawaiian organization not sacred object and object of cultural rather than property owned by an identified in this notice that wish to patrimony under 25 U.S.C. 3001. individual. request transfer of control of these This notice is published as part of the • Pursuant to 25 U.S.C. 3001(2), there associated funerary objects should National Park Service’s administrative is a relationship of shared group submit a written request to Pu‘ukohola¯ responsibilities under NAGPRA, 25 identity that can be reasonably traced Heiau National Historic Site. If no U.S.C. 3003(d)(3). The determinations in between the sacred object and object of additional requestors come forward, this notice are the sole responsibility of cultural patrimony and the Central transfer of control of the associated the museum, institution, or Federal Council of the Tlingit & Haida Indian funerary objects to the lineal agency that has control of the Native Tribes. descendants, Indian Tribes, or Native American cultural item. The National Additional Requesters and Disposition Hawaiian organizations stated in this Park Service is not responsible for the notice may proceed. determinations in this notice. Lineal descendants or representatives of any Indian Tribe or Native Hawaiian DATES: Lineal descendants or History and Description of the Cultural organization not identified in this notice representatives of any Indian Tribe or Item that wish to claim this cultural item Native Hawaiian organization not At an unknown date, one cultural should submit a written request with identified in this notice that wish to item, a heraldic house screen, identified information in support of the claim to request transfer of control of these as Tlingit in the Los Angeles County Jeffrey N. Blair, General Counsel and associated funerary objects should Museum of Art’s records, was removed Assistant Secretary, Los Angeles County submit a written request with from the Tlingit Thunderbird Clan Museum of Art, 5905 Wilshire information in support of the request to House. This item was loaned to the Boulevard, Los Angeles, CA 90036, Pu‘ukohola¯ Heiau National Historic Site Alaska State Museum by a Thunderbird telephone (323) 857–6048, email jblair@ at the address in this notice by February House representative, where it was lacma.org, by February 22, 2021. After 22, 2021. displayed between 1971–1987. Upon that date, if no additional claimants ADDRESSES: Daniel K. Kawaiaea, Jr., the lender’s passing, his spouse have come forward, transfer of control Superintendent, Pu‘ukohola¯ Heiau consigned the screen to auction at of the sacred object and object of National Historic Site, 62–3601

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Kawaihae Road, Kamuela, HI 96743, Hawaiian women, and children of INTERNATIONAL TRADE telephone (808) 882–7218, email daniel_ Native Hawaiian descent, these items COMMISSION [email protected]. are considered to have a Native SUPPLEMENTARY INFORMATION: Notice is Hawaiian affiliation. [Inv. No. 731–TA–1472 (Final)] here given in accordance with the Native American Graves Protection and Determinations Made by Pu‘ukohola¯ Difluoromethane (R-32) From China; Repatriation Act (NAGPRA), 25 U.S.C. Heiau National Historic Site Cancellation of Hearing for Final Phase Anti-Dumping Duty Investigation 3003, of the completion of an inventory Officials of Pu‘ukohola¯ Heiau of associated funerary objects under the National Historic Site have determined AGENCY: United States International control of the U.S. Department of the that: Trade Commission. Interior, National Park Service, Pu‘ukohola¯ Heiau National Historic • Pursuant to 25 U.S.C. 3001(3)(A), ACTION: Notice. Site, Kawaihae, HI. The associated the 35 objects described in this notice funerary objects were removed from are reasonably believed to have been DATES: Effective Date: January 12, 2021. Kawaihae, County, HI. placed with or near individual human FOR FURTHER INFORMATION CONTACT: This notice is published as part of the remains at the time of death or later as Ahdia Bavari ((202) 205–3191), Office of National Park Service’s administrative part of the death rite or ceremony and Investigations, U.S. International Trade responsibilities under NAGPRA, 25 are reasonably believed to have been Commission, 500 E Street SW, U.S.C. 3003(d)(3). The determinations in made exclusively for burial purposes or Washington, DC 20436. Hearing- this notice are the sole responsibility of to contain human remains. impaired persons can obtain the Superintendent, Pu‘ukohola¯ Heiau • information on this matter by contacting National Historic Site. Pursuant to 25 U.S.C. 3001(2), there the Commission’s TDD terminal on 202– is a relationship of shared group Consultation 205–1810. Persons with mobility identity that can be reasonably traced impairments who will need special A detailed assessment of the between the associated funerary objects assistance in gaining access to the associated funerary objects was made by and the Akau Ohana; Hawaii Island Commission should contact the Office Pu‘ukohola¯ Heiau National Historic Site Burial Council; Kahaialii Ohana; of the Secretary at 202–205–2000. professional staff in consultation with Kalahiki Ohana; Laau Ohana; Na Aikane General information concerning the representatives of the Office of o Pu‘ukohola Heiau; Na Papa Kanaka o Commission may also be obtained by Hawaiian Affairs; Robertson Ohana; Pu‘ukohola Heiau; Napaepae-Kunewa accessing its internet server (http:// Queen Emma Land Company; and the Ohana; Office of Hawaiian Affairs; www.usitc.gov). The public record for Waimea Hawaiian Civic Club. The Akau Queen Emma Land Company; Robertson these reviews may be viewed on the Ohana; Hawaii Island Burial Council; Ohana; Soo Ohana; and the Waimea Commission’s electronic docket (EDIS) Hawaii State Historic Preservation Hawaiian Civic Club (hereafter referred at http://edis.usitc.gov. Division; Kahaialii Ohana; Kalahiki to as ‘‘The Native Hawaiian SUPPLEMENTARY INFORMATION: Effective Ohana; Laau Ohana; Na Aikane o Organizations). Pu‘ukohola Heiau; Na Papa Kanaka o August 27, 2020, the Commission Pu‘ukohola Heiau; Napaepae-Kunewa Additional Requestors and Disposition published its schedule for the final Ohana; and the Soo Ohana were invited phase of this investigation (85 FR 55688, to consult but did not participate Lineal descendants or representatives September 9, 2020), further revised (hereafter referred to as ‘‘The Consulted of any Indian Tribe or Native Hawaiian effective October 19, 2020 (85 FR 68566, and Invited Native Hawaiian organization not identified in this notice October 23, 2020). Counsel for Arkema Organizations’’). that wish to request transfer of control filed its request to appear at the hearing of these associated funerary objects on January 8, 2021. No other parties History and Description of the Remains should submit a written request with submitted a request to appear at the In 1978, 35 cultural items were information in support of the request to hearing. On January 12, 2021, counsel removed from the John Young Daniel K. Kawaiaea, Jr., Superintendent, withdrew their request to appear at the Homestead in Hawaii County, HI, Pu‘ukohola¯ Heiau National Historic hearing. Counsel indicated a willingness during archeological investigations at Site, 62–3601 Kawaihae Road, Kamuela, to submit written responses to any the upper portion of the site. The items HI 96743, telephone (808) 882–7218, Commission questions in lieu of an actual hearing. Consequently, the public were recovered from a burial crypt email [email protected], by hearing in connection with this within Structure 2. No human remains February 22, 2021. After that date, if no investigation, scheduled to begin at 9:30 were removed. The items were additional requestors have come a.m. on January 14, 2021, is cancelled. identified as parts of a coffin made forward, transfer of control of the exclusively for burial purposes or to Parties to this investigation should associated funerary objects to The respond to any written questions posed contain human remains. They were Native Hawaiian Organizations may accessioned and cataloged into the by the Commission in their posthearing proceed. park’s museum collection on May 8, briefs, which are due to be filed on 1986. The 35 associated funerary objects The Pu‘ukohola¯ Heiau National January 21, 2021. are four square cut nails and 31 coffin Historic Site is responsible for notifying For further information concerning fragments. The Consulted and Invited Native this investigation see the Commission’s The upper portion of John Young Hawaiian Organizations that this notice notice cited above and the Homestead is a post-contact period site has been published. Commission’s Rules of Practice and Procedure, part 201, subparts A through with a use period dating from 1798 to Dated: December 15, 2020. at least 1835, the time of John Young’s E (19 CFR part 201), and part 207, death. The burials were those of a Melanie O’Brien, subparts A and C (19 CFR part 207). Manager, National NAGPRA Program. juvenile and infant, with the infant Authority: This investigation is being placed in a wood coffin. Because of John [FR Doc. 2021–01339 Filed 1–21–21; 8:45 am] conducted under authority of title VII of the Young’s marriage to several Native BILLING CODE 4312–52–P Tariff Act of 1930; this notice is published

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pursuant to section 207.21 of the ACTION: Advisory Committee on DATES: May 11, 2021, 10 a.m.–5 p.m. Commission’s rules. Bankruptcy Rules, Revised notice of (Eastern). By order of the Commission. open meeting. FOR FURTHER INFORMATION CONTACT: Issued: January 14, 2021. SUMMARY: The Advisory Committee on Rebecca A. Womeldorf, Secretary, Lisa Barton, Bankruptcy Rules will hold a virtual Committee on Rules of Practice and Secretary to the Commission. meeting on April 8, 2021 and April 9, Procedure of the Judicial Conference of [FR Doc. 2021–01271 Filed 1–21–21; 8:45 am] 2021. The meeting is open to the public. the United States, Thurgood Marshall BILLING CODE 7020–02–P When a meeting is held virtually, Federal Judiciary Building, One members of the public may join by Columbus Circle NE, Suite 7–300, telephone or video conference to Washington, DC 20544, Phone (202) JUDICIAL CONFERENCE OF THE observe but not participate. An agenda 502–1820, RulesCommittee_Secretary@ UNITED STATES and supporting materials will be posted ao.uscourts.gov. at least 7 days in advance of the meeting Advisory Committee on Appellate at: http://www.uscourts.gov/rules- Authority: 28 U.S.C. 2073. Rules; Meeting of the Judicial policies/records-and-archives-rules- Dated: January 14, 2021. Conference committees/agenda-books. The Rebecca A. Womeldorf, AGENCY: Judicial Conference of the announcement for this meeting was Rules Committee Secretary, Rules Committee United States. previously published in 86 FR 3195. Staff. ACTION: Advisory Committee on DATES: April 8–9, 2021, 10 a.m.–5 p.m. [FR Doc. 2021–01384 Filed 1–21–21; 8:45 am] Appellate Rules, Revised notice of open (Eastern). BILLING CODE 2210–55–P meeting. FOR FURTHER INFORMATION CONTACT: Rebecca A. Womeldorf, Secretary, SUMMARY: The Advisory Committee on Committee on Rules of Practice and JUDICIAL CONFERENCE OF THE Appellate Rules will hold a virtual Procedure of the Judicial Conference of UNITED STATES meeting on April 7, 2021. The meeting the United States, Thurgood Marshall is open to the public. When a meeting Federal Judiciary Building, One Advisory Committee on Civil Rules; is held virtually, members of the public Columbus Circle NE, Suite 7–300, Meeting of the Judicial Conference may join by telephone or video Washington, DC 20544, Phone (202) conference to observe but not 502–1820, RulesCommittee_Secretary@ AGENCY: Judicial Conference of the participate. An agenda and supporting ao.uscourts.gov. United States. materials will be posted at least 7 days in advance of the meeting at: http:// Authority: 28 U.S.C. 2073. ACTION: Advisory Committee on Civil www.uscourts.gov/rules-policies/ Dated: January 14, 2021. Rules, Notice of open meeting. records-and-archives-rules-committees/ Rebecca A. Womeldorf, agenda-books. The announcement for Rules Committee Secretary, Rules Committee SUMMARY: The Advisory Committee on this meeting was previously published Staff. Civil Rules will hold a virtual meeting in 86 FR 3196. [FR Doc. 2021–01383 Filed 1–21–21; 8:45 am] on April 23, 2021. The meeting is open DATES: April 7, 2021, 10 a.m.–5 p.m. BILLING CODE 2210–55–P to the public. When a meeting is held (Eastern). virtually, members of the public may join by telephone or video conference to FOR FURTHER INFORMATION CONTACT: observe but not participate. An agenda Rebecca A. Womeldorf, Secretary, JUDICIAL CONFERENCE OF THE Committee on Rules of Practice and UNITED STATES and supporting materials will be posted Procedure of the Judicial Conference of at least 7 days in advance of the meeting Advisory Committee on Criminal the United States, Thurgood Marshall at: http://www.uscourts.gov/rules- Rules; Meeting of the Judicial Federal Judiciary Building, One policies/records-and-archives-rules- Conference Columbus Circle NE, Suite 7–300, committees/agenda-books. Washington, DC 20544, Phone (202) AGENCY: Judicial Conference of the DATES: April 23, 2021, 10 a.m.—5 p.m. 502–1820, RulesCommittee_Secretary@ United States. (Eastern). ao.uscourts.gov. ACTION: Advisory Committee on FOR FURTHER INFORMATION CONTACT: Authority: 28 U.S.C. 2073. Criminal Rules, Revised notice of open Rebecca A. Womeldorf, Secretary, Dated: January 14, 2021. meeting. Committee on Rules of Practice and Rebecca A. Womeldorf, SUMMARY: The Advisory Committee on Procedure of the Judicial Conference of Rules Committee Secretary, Rules Committee Criminal Rules will hold a virtual the United States, Thurgood Marshall Staff. meeting on May 11, 2021. The meeting Federal Judiciary Building, One [FR Doc. 2021–01382 Filed 1–21–21; 8:45 am] is open to the public. When a meeting Columbus Circle NE, Suite 7–300, BILLING CODE 2210–55–P is held virtually, members of the public Washington, DC 20544, Phone (202) _ may join by telephone or video 502–1820, RulesCommittee Secretary@ conference to observe but not ao.uscourts.gov. JUDICIAL CONFERENCE OF THE participate. An agenda and supporting Authority: 28 U.S.C. 2073. UNITED STATES materials will be posted at least 7 days Dated: January 14, 2021. Advisory Committee on Bankruptcy in advance of the meeting at: http:// www.uscourts.gov/rules-policies/ Rebecca A. Womeldorf, Rules; Meeting of the Judicial Rules Committee Secretary, Rules Committee Conference records-and-archives-rules-committees/ agenda-books. The announcement for Staff. AGENCY: Judicial Conference of the this meeting was previously published [FR Doc. 2021–01380 Filed 1–21–21; 8:45 am] United States. in 86 FR 3195. BILLING CODE 2210–55–P

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JUDICIAL CONFERENCE OF THE reduce paperwork and respondent Section 303(a)(1) and (6) of the Social UNITED STATES burden in accordance with the Security Act authorizes this information Paperwork Reduction Act of 1995 collection. Advisory Committee on Evidence (PRA). This information collection is subject Rules; Meeting of the Judicial to the PRA. A Federal agency generally DATES: Conference Consideration will be given to all cannot conduct or sponsor a collection written comments received by March of information, and the public is AGENCY: Judicial Conference of the 23, 2021. generally not required to respond to an United States. ADDRESSES: A copy of this ICR with information collection, unless it is ACTION: Advisory Committee on applicable supporting documentation, approved by OMB under the PRA and Evidence Rules, Revised notice of open including a description of the likely displays a currently valid OMB Control meeting. respondents, proposed frequency of Number. In addition, notwithstanding response, and estimated total burden, any other provisions of law, no person SUMMARY: The Advisory Committee on Evidence Rules will hold a virtual may be obtained free by contacting shall generally be subject to penalty for meeting on April 30, 2021. The meeting Stephanie Garcia by telephone at 202– failing to comply with a collection of is open to the public. When a meeting 693–3207 (this is not a toll-free information that does not display a is held virtually, members of the public number), TTY 1–877–889–5627 (this is valid Control Number. See 5 CFR may join by telephone or video not a toll-free number), or by email at 1320.5(a) and 1320.6. conference to observe but not [email protected]. Interested parties are encouraged to participate. An agenda and supporting Submit written comments about, or provide comments to the contact shown materials will be posted at least 7 days requests for a copy of, this ICR by mail in the ADDRESSES section. Comments in advance of the meeting at: http:// or courier to the U.S. Department of must be written to receive www.uscourts.gov/rules-policies/ Labor, Employment and Training consideration, and they will be records-and-archives-rules-committees/ Administration, Office of summarized and included in the request agenda-books. The announcement for Unemployment Insurance, 200 for OMB approval of the final ICR. In this meeting was previously published Constitution Avenue NW, Washington, order to help ensure appropriate in 86 FR 3196. DC 20210; by email: garcia.stephanie@ consideration, comments should dol.gov; or by fax 202–696–3975. mention OMB control 1205–0332. DATES: April 30, 2021, 10 a.m.–5 p.m. Submitted comments will also be a FOR FURTHER INFORMATION CONTACT: (Eastern). matter of public record for this ICR and Stephanie Garcia by telephone at 202– FOR FURTHER INFORMATION CONTACT: posted on the internet, without 693–3207 (this is not a toll-free number) Rebecca A. Womeldorf, Secretary, redaction. DOL encourages commenters or by email at [email protected]. Committee on Rules of Practice and not to include personally identifiable Procedure of the Judicial Conference of SUPPLEMENTARY INFORMATION: DOL, as information, confidential business data, the United States, Thurgood Marshall part of continuing efforts to reduce or other sensitive statements/ Federal Judiciary Building, One paperwork and respondent burden, information in any comments. Columbus Circle NE, Suite 7–300, conducts a pre-clearance consultation DOL is particularly interested in Washington, DC 20544, Phone (202) program to provide the general public comments that: 502–1820, RulesCommittee_Secretary@ and Federal agencies an opportunity to • Evaluate whether the proposed ao.uscourts.gov. comment on proposed and/or collection of information is necessary Authority: 28 U.S.C. 2073. continuing collections of information for the proper performance of the before submitting them to the Office of functions of the agency, including Dated: January 14, 2021. Management and Budget (OMB) for final whether the information will have Rebecca A. Womeldorf, approval. This program helps to ensure practical utility; Rules Committee Secretary, Rules Committee requested data can be provided in the • Evaluate the accuracy of the Staff. desired format, reporting burden (time agency’s estimate of the burden of the [FR Doc. 2021–01385 Filed 1–21–21; 8:45 am] and financial resources) is minimized, proposed collection of information, BILLING CODE 2210–55–P collection instruments are clearly including the validity of the understood, and the impact of collection methodology and assumptions used; requirements can be properly assessed. • Enhance the quality, utility, and DEPARTMENT OF LABOR Since 1987, the regulation at 20 CFR clarity of the information to be part 602 requires states to operate a collected; and Employment and Training program to assess their Unemployment • Minimize the burden of the Administration Insurance (UI) tax and benefit programs. collection of information on those who are to respond, including through the Agency Information Collection TPS is designed to assess the major use of appropriate automated, Activities; Comment Request internal UI tax functions by utilizing several methodologies to examine the electronic, mechanical, or other ACTION: Notice. accuracy of the ETA 581, Contribution technological collection techniques or Operations Report, OMB approval other forms of information technology, SUMMARY: The Department of Labor’s number 1205–0178, expiring August 31, (e.g., permitting electronic submission (DOL) Employment and Training 2021, and its associated Computed of responses). Administration (ETA) is soliciting Measures. A two-fold examination Agency: DOL–ETA. comments concerning a proposed contains ‘‘Systems Reviews’’ that Type of Review: Extension without extension for the authority to conduct examine tax systems for the existence of changes. the information collection request (ICR) internal controls and the extraction of Title of Collection: Tax Performance titled, ‘‘Tax Performance System (TPS).’’ small samples of those systems’ System. This comment request is part of transactions, which are then examined Form: ET Handbook Number 407. continuing Departmental efforts to to verify the effectiveness of controls. OMB Control Number: 1205–0332.

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Affected Public: State Workforce (SEC) Electronic Data Gathering, President reflecting the proposals for Agencies. Analysis, and Retrieval (EDGAR) rescission under section 1012 of that Estimated Number of Respondents: System. OMB’s detailed analysis of the Act that were transmitted to the 52. aforementioned databases has been Congress for consideration on January Frequency: Once. posted on Regulations.gov. This notice 14, 2021. Total Estimated Annual Responses: has a 30-day comment period. DATES: The Congress was notified on 52. DATES: Please submit comments on or January 14, 2021. Estimated Average Time per before February 22, 2021. At the ADDRESSES: The rescissions proposal Response: 1,716 hours. conclusion of the 30-day comment package is available on-line on the OMB Estimated Total Annual Burden period, if OMB decides to finalize the home page at: https:// Hours: 89,232 hours. designation, OMB will publish an www.whitehouse.gov/omb/budget- Total Estimated Annual Other Cost additional notice in the Federal Register rescissions-deferrals/. Burden: $0. to officially designate the databases. Russell T. Vought, Authority: 44 U.S.C. 3506(c)(2)(A). Please note that all public comments received are subject to the Freedom of Director. John Pallasch, Information Act and will be posted in Dear Madam Speaker: (Dear Mr. President:) Assistant Secretary for Employment and their entirety, including any personal In accordance with section 1012(a) of the Training. and/or business confidential Congressional Budget and Impoundment [FR Doc. 2021–01265 Filed 1–21–21; 8:45 am] information provided. Do not include Control Act of 1974 (2 U.S.C. 683(a)), I BILLING CODE 4510–FW–P any information you would not like to herewith report 73 rescissions of budget authority, totaling $27.4 billion. be made publicly available. The proposed rescissions affect programs ADDRESSES: Comments may be sent by of the Departments of Agriculture, OFFICE OF MANAGEMENT AND mail. The Office of Management and Commerce, Education, Energy, Health and BUDGET Budget, Attn: OFFM, 725 17th Street Human Services, Homeland Security, the NW, Washington, DC 20503. Interior, Justice, Labor, State, and the Proposed Designation of Databases Treasury, as well as the African Development FOR FURTHER INFORMATION CONTACT: for Treasury’s Working System Under Foundation, the Commission of Fine Arts, the Do Not Pay Initiative Regina Kearney at (202) 395–3993. the Corporation for National and Community SUPPLEMENTARY INFORMATION: PIIA, Service, the District of Columbia, the AGENCY: Office of Management and Public Law 116–117, 134 Stat. 113 (Mar. Environmental Protection Agency, the Inter- Budget. 2, 2020) (codified at 31 U.S.C. 3351– American Foundation, the Millennium ACTION: Notice of proposed designation. 3358), authorizes the OMB to designate Challenge Corporation, the National databases for inclusion in Treasury’s Endowments for the Arts and Humanities, SUMMARY: The Payment Integrity the National Gallery of Art, the Peace Corps, Working System under the DNP the Presidio Trust, the United States Agency Information Act of 2019 (PIIA) Initiative. 31 U.S.C. 3354(b)(1)(B). PIIA authorizes the Office of Management for International Development, the United further requires OMB to provide public States Army Corps of Engineers, and the and Budget (OMB) to designate notice and opportunity for comment Woodrow Wilson International Center for databases for inclusion in Treasury’s prior to designating additional Scholars. Working System under the Do Not Pay databases. Id. at § 3354(b)(2)(B). For The details of these rescissions are set forth (DNP) Initiative. PIIA further requires additional analysis and information in the enclosed letter from the Director of the OMB to provide public notice and pertaining to aforementioned databases, Office of Management and Budget. opportunity for comment prior to please refer to Regulations.gov. Sincerely, designating additional databases. As a We invite public comments on the Donald J. Trump result, OMB is publishing this Notice of proposed designation of each of the January 14, 2021 Proposed Designation to designate the twelve databases identified in this The President United States Postal Service (USPS) notice. The White House Delivery Sequence File, the Census Dear Mr. President: Russell T. Vought, Bureau Federal Audit Clearinghouse, Submitted for your consideration is a the Do Not Pay (DNP) Agency Director. special message that includes rescission Adjudication Data, Fiscal Service’s [FR Doc. 2021–01327 Filed 1–21–21; 8:45 am] proposals for the Departments of Agriculture, Payments, Claims, and Enhanced BILLING CODE 3110–01–P Commerce, Education, Energy, Health and Reconciliation (PACER) database, Human Services, Homeland Security, the Bureau of Prisons (BOP) Incarceration Interior, Justice, Labor, State, and the Data, Digital Accountability and OFFICE OF MANAGEMENT AND Treasury, as well as the African Development Transparency Act (DATA Act) data, BUDGET Foundation, the Commission of Fine Arts, the Corporation for National and Community Census Bureau’s American Rescission Proposals Pursuant to the Service, the District of Columbia, the Communities Survey (ACS) Annual Environmental Protection Agency, the Inter- State and County Data Profiles, Veterans Congressional Budget and Impoundment Control Act of 1974 American Foundation, the Millennium Affairs’ (VA) Beneficiary Identification Challenge Corporation, the National Records Locator Service (BIRLS), AGENCY: Executive Office of the Endowments for the Arts and Humanities, Department of Agriculture’s National President, Office of Management and the National Gallery of Art, the Peace Corps, Disqualified List (NDL), Center for Budget. the Presidio Trust, the United States Agency for International Development (USAID), the Medicare and Medicaid Services (CMS) ACTION: Notice of rescissions. National Plan and Provider United States Army Corps of Engineers, and the Woodrow Wilson International Center for SUMMARY: Enumeration System (NPPES), Internal Pursuant to section 1014(d) of Scholars. Revenue Service’s (IRS) Statistics of the Congressional Budget and The Administration is proposing these Income (SOI) Annual Individual Income Impoundment Control Act of 1974, rescissions of enacted appropriations in Tax ZIP Code Data, and the U.S. enclosed for publication in the Federal accordance with section 1012(a) of the Securities and Exchange Commission’s Register is a special message from the Congressional Budget and Impoundment

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Control Act of 1974 (ICA) (2 U.S.C. 683(a)). Development. Furthermore, the Budget Rescission proposal no. R21–4 As you requested in your statement on proposes to eliminate these programs because Agency: DEPARTMENT OF COMMERCE December 27, this special message identifies they are wasteful and provided over a billion Bureau: National Oceanic and Atmospheric wasteful and unnecessary spending that must dollars over 10 years to successful businesses Administration be removed from the Consolidated that qualify for private sector capital. Account: Operations, Research, and Facilities Appropriations Act, 2021, as well as other Government funding is appropriation for (013-1450 2021/2022) amounts that are no longer needed for the early-stage research, not deployment of Amount proposed for rescission: purposes for which they were appropriated. commercially available technologies. $181,097,000 This special message emphasizes the need Enacting the rescission would eliminate the to cut wasteful foreign aid spending at the program. Justification: Department of State and USAID and other Rescission proposal no. R21–2 This proposal would rescind $181 million international affairs agencies, while also Agency: DEPARTMENT OF AGRICULTURE of the $285 million appropriated in FY 2021 proposing targeted cuts to programs across Bureau: Foreign Agricultural Service for the National Oceanic and Atmospheric the Federal Government where the funding Account: Food for Peace Title II Grants (012- Administration’s (NOAA) Climate Research provided by the bill seems particularly 2278/X) programs, a new water resource cooperative egregious, especially in the context of the institute, and Sea Grant. NOAA’s climate economic hardship that was caused by the Amount proposed for rescission: $1,528,699,234 research programs fund a wide range of pandemic. intramural and extramural activities and This special message proposes to rescind Justification: tools for decision making. The direction to $27.4 billion in budget authority, the largest establish a new, unrequested cooperative ICA rescission package ever proposed. If This proposal would rescind $1.5 billion of the $1.7 billion appropriated in FY 2021 for institute causes serious concerns, as NOAA enacted, these rescissions would decrease already addresses many of these issues Federal outlays in the affected accounts by an Food for Peace Title II Grants. While Title II is one component of U.S. emergency overseas within existing programs. Those underlying estimated $24.9 billion; this would have a programs themselves deserve review, as in commensurate effect on the Federal budget food aid, it is inefficient and inflexible compared to emergency food aid provided the past they have supported activities such deficit and the national economy, and would as local tourism efforts and rain garden result in less borrowing by the Federal through the International Disaster Assistance account. These funds far exceed the FY 2021 education, both of which are more Government. appropriately funded at the local level. A In addition to the items included in the Budget request level for humanitarian assistance, which combined with other new institute also creates long term funding attached special message, there are numerous obligations that will negatively impact provisions in the Consolidated available resources average nearly $9 billion annually—funding sufficient to allow the NOAA’s ability to focus on higher priority Appropriations Act, 2021 (Pub. L. 116–260), second highest annual U.S. humanitarian activities. Enacting the rescission would that are not subject to rescission under the assistance programming ever in calendar eliminate funding for NOAA’s Climate ICA but nonetheless contribute to the years 2020 and 2021. Enacting the rescission Competitive Research program and Sea Grant Nation’s unsustainable fiscal path. These would eliminate the portion of Title II in excess of what is needed to achieve include, for example, extensions of energy funding that remains unobligated and Administration objectives and eliminate the tax credits including the Investment Tax encourage greater contributions from other direction to establish a new, costly, Credit and Production Tax Credit. Even nations and provide savings to the U.S. unrequested cooperative institute. during the pandemic, industries supported taxpayer while retaining America’s position Rescission proposal no. R21–5 by these tax credits have continued to grow, as the largest single donor. and they have achieved full maturity, no Agency: DEPARTMENT OF COMMERCE longer needing costly Federal support. We Rescission proposal no. R21–3 Bureau: National Oceanic and Atmospheric look forward to working with the Congress to Agency: DEPARTMENT OF AGRICULTURE Administration identify additional opportunities to reduce Bureau: Foreign Agricultural Service Account: Pacific Coastal Salmon Recovery unnecessary Federal subsidies and put the Account: McGovern-Dole International Food (013-1451 2021/2022) Nation’s fiscal house back in order. for Education and Child Nutrition Program Amount proposed for rescission: $64,500,000 Grants (012-2903/X) Recommendation Justification: Amount proposed for rescission: This proposal would rescind $64.5 million I recommend you transmit a special $230,000,000 message that includes these rescission of the $65 million appropriated in FY 2021 proposals to the Congress. Justification: for the Pacific Coastal Salmon Recovery Fund (PCSRF). PSCRF provides competitive grants Sincerely, This proposal would rescind $230 million, to states and tribes for salmon restoration the full amount appropriated in FY 2021 for Russell T. Vought projects. These funds would be used for McGovern-Dole International Food Program. Director projects such as habitat improvements and This program provides for the donation of Enclosures dam removal, unnecessarily augmenting U.S. agricultural commodities and associated existing state and tribal efforts and favoring PROPOSED RESCISSION OF BUDGET financial and technical assistance in foreign a region and certain species. Enacting the AUTHORITY countries, a service which is duplicative to rescission would eliminate the program. that of the U.S. Agency for International Report Pursuant to Section 1012 of the Rescission proposal no. R21–6 Congressional Budget and Impoundment Development. The program has high costs Agency: DEPARTMENT OF EDUCATION Control Act of 1974 (2 U.S.C. 683) associated with transporting commodities and it has unaddressed oversight and Bureau: Office of Federal Student Aid Rescission proposal no. R21–1 performance monitoring challenges. During Account: Student Financial Assistance (091- Agency: DEPARTMENT OF AGRICULTURE the 17-year operation of McGovern-Dole, 0200 2021/2022) Bureau: Rural Business-Cooperative Service auditors have found oversight weaknesses as Amount proposed for rescission: Account: Rural Energy for America Program reported by the Government Accountability $880,000,000 (012-1908/X) Office (GAO), independent consultants, and Justification: Amount proposed for rescission: $10,000,000 the Department of Agriculture’s Office of Inspector General. GAO has found weakness This proposal would rescind $880 million Justification: in performance monitoring, program of the $24.5 billion appropriated in FY 2021 This proposal would rescind $10 million, evaluations, and prompt closeout of for the Student Financial Assistance account. the full amount appropriated in FY 2021 for agreements. GAO has also found The Federal Supplemental Educational a new renewable energy pilot program. This inefficiencies with in-kind food aid, such as Opportunity Grant (SEOG) program provides assistance would be duplicative of existing McGovern-Dole, resulting in higher costs. need-based grant aid to eligible loan guarantee and grant programs at the Enacting the rescission would eliminate the undergraduate students to help reduce Department of Agriculture, Rural program. financial barriers to postsecondary education.

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The SEOG program is not optimally allocated (ARPA–E) program direction. ARPA–E funds Agency: DEPARTMENT OF ENERGY based on a student’s financial need and is high-risk energy research and development Bureau: Energy Programs duplicative of other need-based financial aid projects. ARPA–E was first funded in 2009 Account: Energy Efficiency and Renewable programs, such as Pell Grants. Enacting the through the American Reinvestment and Energy (089-0321/X) rescission would eliminate the program. Recovery Act as a new, separate office within Amount proposed for rescission: Rescission proposal no. R21–7 the Department of Energy (DOE), however, it $2,124,323,000 makes little strategic sense that ARPA–E Agency: DEPARTMENT OF EDUCATION Justification: Bureau: Office of Federal Student Aid exists independent of DOE’s main applied Account: Federal Direct Student Loan research programs, especially when the This proposal would rescind $2.1 billion of Program (091-0243/X) research they fund is similar. These funds the $2.9 billion appropriated in FY 2021 for would be used to administer FY 2021 the Office of Energy Efficiency and Amount proposed for rescission: $50,000,000 research and development solicitations and Renewable Energy (EERE). EERE Justification: awards. This rescission would reduce predominantly funds research, development, administrative resources commensurate with demonstration, and deployment of This proposal would rescind $50 million, eliminating the program. Enacting the transportation, renewable energy, and energy the full amount appropriated in FY 2021 for rescission would maintain sufficient efficient technologies. These funds would be Temporary Expanded Public Service Loan administrative funding to conduct close out used for later stage development, Forgiveness (TEPLSF). TEPSLF provides loan activities. demonstration, commercialization, and forgiveness for certain Federal student loan deployment of energy technologies which is borrowers working in public service who do Rescission proposal no. R21–10 more appropriate for the private sector to not qualify for Public Service Loan Agency: DEPARTMENT OF ENERGY conduct. Enacting the rescission would Forgiveness. The $50 million is not necessary Bureau: Energy Programs rebalance the portfolio to more heavily favor because the Congress has previously Account: Advanced Research Projects early-stage research and development where allocated $750 million, which provides for Agency—Energy (089-0337/X) the Federal role is strongest. up to $1.075 billion in loan forgiveness, for Amount proposed for rescission: this purpose and most of that money has not $392,000,000 Rescission proposal no. R21–13 yet been spent. Under this rescission, these Agency: DEPARTMENT OF ENERGY public service employees would still have Justification: Bureau: Energy Programs access to up to $1.075 billion in loan This proposal would rescind $392 million, Account: Advanced Technology Vehicles forgiveness through TEPSLF as well as the full amount of no-year funding Manufacturing Loan Program (089-0322 income-driven repayment plans that are appropriated in FY 2021 for Advanced 2021/2022) available to other borrowers. These Research Project Agency—Energy (ARPA–E). Amount proposed for rescission: $5,000,000 repayment plans are generous in that they ARPA–E funds high-risk energy research and allow for affordable monthly payments and development projects. ARPA–E was first Justification: permit eventual loan forgiveness. Enacting funded in 2009 through the American This proposal would rescind $5 million, the rescission would reduce the amount of Reinvestment and Recovery Act as a new, the full amount appropriated in FY 2021 for loan forgiveness provided under TEPSLF, separate office within the Department of the Advanced Technology Vehicle which the Congress has just increased to Energy (DOE), however, it makes little Manufacturing Loan Program (ATVM). $1.15 billion, by up to $75 million, leaving strategic sense that ARPA–E exists ATVM provides direct loans to support the up to $1.075 billion in loan forgiveness independent of DOE’s main applied research manufacturing of advanced technology available. programs, especially when the research they vehicles and component parts. These funds Rescission proposal no. R21–8 fund is similar. This elimination would would be used for administrative expenses Agency: DEPARTMENT OF ENERGY enable a streamlining of Federal energy associated with soliciting and originating Bureau: Energy Programs research and development activities, new loans. The private sector is better Account: Science (089-0222/X) promotes a clearer focus on early-stage positioned to finance the deployment of research and development, where the Federal commercially viable advanced vehicle Amount proposed for rescission: role is strongest, and reflects the private manufacturing projects. Sufficient carryover $1,186,500,000 sector’s role in commercializing technologies. balances are available to monitor existing Justification: Enacting the rescission would eliminate the loans. Enacting this rescission would program. eliminate the program. This proposal would rescind $1.2 billion of the $2.3 billion in emergency funding Rescission proposal no. R21–11 Rescission proposal no. R21–14 appropriated in FY 2021 for the Office of Agency: DEPARTMENT OF ENERGY Agency: DEPARTMENT OF ENERGY Science (SC). SC funds scientific research Bureau: Energy Programs Bureau: Energy Programs and major scientific facilities as a sponsor of Account: Energy Efficiency and Renewable Account: Advanced Technology Vehicles basic research in the physical sciences and Energy (089-0321 2021/2022) Manufacturing Loan Program (089-0322/X) fundamental energy research. SC supports Amount proposed for rescission: $42,437,000 Amount proposed for rescission: ten national laboratories, university research, $2,425,499,814 scientific and medical isotope development Justification: and production, and workforce development This proposal would rescind $42 million of Justification: programs. Funding designated as emergency the $165 million appropriated in FY 2021 for This proposal would rescind $2.4 billion, would be used to support facility operations the Office of Energy Efficiency and in addition to the $1.9 billion rescinded by and modernization, which are not an Renewable Energy (EERE) program direction. the Consolidated Appropriations Act, 2021, emergency function. Enacting the rescission EERE predominantly funds research, of the funds appropriated in the Consolidated would focus resources on high priority development, demonstration, and Security, Disaster Assistance, and Continuing activities within SC. deployment (RDD&D) of transportation, Appropriations Act, 2009 for the Advanced Rescission proposal no. R21–9 renewable energy, and energy efficient Technology Vehicle Manufacturing Loan Agency: DEPARTMENT OF ENERGY technologies. These funds would be used for Program (ATVM). ATVM provides direct Bureau: Energy Programs administrative expenses associated with loans to support the manufacturing of Account: Advanced Research Projects RDD&D of energy technologies, which are advanced technology vehicles and Agency—Energy (089-0337 2021/2022) activities that the private sector has a clear component parts. The private sector is better positioned to finance the deployment of Amount proposed for rescission: $13,744,000 incentive to invest in. Enacting the rescission would rebalance the portfolio to more commercially viable advanced vehicle Justification: heavily favor early-stage research and manufacturing projects. Enacting this rescission would eliminate the program. This proposal would rescind $14 million of development where the Federal role is the $35 million appropriated in FY 2021 for strongest. Rescission proposal no. R21–15 Advanced Research Projects Agency—Energy Rescission proposal no. R21–12 Agency: DEPARTMENT OF ENERGY

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Bureau: Energy Programs Account: CDC-Wide Activities and Program Rescission proposal no. R21–21 Account: Title 17 Innovative Technology Support (075-0943 2021/2021) Agency: DEPARTMENT OF HOMELAND Loan Guarantee Program (089-0208 2021/ Amount proposed for rescission: $12,300,000 SECURITY 2022) Bureau: Office of the Secretary and Executive Justification: Amount proposed for rescission: $29,000,000 Management This proposal would rescind $12.3 million Account: Operations and Support (070-0100 Justification: of the $12.5 million appropriated in FY 2021, 2021/2022) This proposal would rescind $29 million of the remaining unobligated balance, for Amount proposed for rescission: $5,000,000 the $32 million appropriated in FY 2021 for Firearm Injury and Mortality Prevention the Title XVII Innovative Technology Loan Research. The explanatory statement Justification: Guarantee Program (T17). T17 provides loans recommends that the Centers for Disease This proposal would rescind $5 million, and loan guarantees to support the Control and Prevention (CDC) conduct the full amount of two-year funding deployment of innovative energy further research on injury and mortality appropriated in FY 2021 for the Office of the technologies. These funds would be used for prevention related to firearms. These funds Ombudsman for Immigration Detention. The administrative expenses associated with would be used for continuing research Office is tasked with reviewing immigration soliciting and originating new loans. The cooperative agreements through the CDC, detention standards, which is unnecessary private sector is better positioned to finance which is a low priority for public health and duplicative of monitoring and the deployment of commercially viable funds when CDC should be focused on inspections by other Department of energy projects. Sufficient carryover balances addressing pressing concerns related to the Homeland Security offices, including are available to monitor existing loans. COVID–19 pandemic and infectious diseases. Immigration and Customs Enforcement and Enacting this rescission would eliminate the Enacting the rescission would eliminate the Office of Inspector General. There is no program. funding for these activities. need to add layers of bureaucracy when the Rescission proposal no. R21–16 Rescission proposal no. R21–19 work is already being done–especially at a high cost to taxpayers. Enacting the Agency: DEPARTMENT OF ENERGY Agency: DEPARTMENT OF HEALTH AND HUMAN SERVICES rescission would eliminate the program and Bureau: Energy Programs streamline the Department’s efforts. Account: Title 17 Innovative Technology Bureau: National Institutes of Health Loan Guarantee Program (089-0208/X) Account: Office of the Director (075-0846 Rescission proposal no. R21–22 2021/2021) Amount proposed for rescission: Agency: DEPARTMENT OF HOMELAND $160,659,356 Amount proposed for rescission: $12,500,000 SECURITY Bureau: Office of the Secretary and Executive Justification: Justification: Management This proposal would rescind $13 million, This proposal would rescind $161 million Account: Federal Assistance (070-0416 2021/ the amount specified in FY 2021 to continue appropriated in FY 2011 for the cost of 2022) research grants on firearm injury and guaranteeing loans under the Title XVII Amount proposed for rescission: $5,000,000 mortality prevention. The explanatory Innovative Technology Loan Guarantee statement recommends that the National Justification: Program (T17). T17 provides loans and loan Institutes of Health take a comprehensive guarantees to support the deployment of This proposal would rescind $5 million, approach to studying underlying causes and innovative energy technologies. These funds the full amount of funding appropriated in evidence-based methods of prevention of would be used for the cost of guaranteeing FY 2021 to the Alternatives to Detention injury, including crime prevention. These loans. The private sector is better positioned (ATD) Case Management pilot program in the funds would primarily be used to continue Office of the Secretary and Executive to finance the deployment of commercially grants funded in FY 2020, which are low viable energy projects. Enacting this Management within the Department of priority due to on-going COVID–19 pandemic Homeland Security. The $5 million proposed rescission would eliminate the origination of response efforts and other types of new loans using appropriated credit subsidy. for rescission were to be transferred to the biomedical research. Enacting the rescission Federal Emergency Management Agency who Rescission proposal no. R21–17 would discontinue new firearm injury and would provide grants to nonprofit and local Agency: DEPARTMENT OF ENERGY mortality prevention grants awarded in FY governments to create a pilot program for Bureau: Energy Programs 2021 and prior years. aliens enrolled in ATD. There is no need to Account: Title 17 Innovative Technology Rescission proposal no. R21–20 develop a case management program when Loan Guarantee Program (089-0209/X) Agency: DEPARTMENT OF HOMELAND one already exists at Immigration and Amount proposed for rescission: $96,855,477 SECURITY Customs Enforcement (ICE). This is yet another example of wasteful spending that Justification: Bureau: Office of the Secretary and Executive Management does nothing to protect Americans. This This proposal would rescind $97 million, Account: Operations and Support (070-0100 money would be better spent on tangible in addition to the $392 million rescinded by 2021/2021) security efforts, such as the border wall or the Consolidated Appropriations Act, 2021, increased ICE detention space. Enacting this Amount proposed for rescission: $13,750,000 of the funds appropriated in the American rescission would eliminate this duplicative Recovery and Reinvestment Act of 2009 for Justification: pilot program. the Temporary Program for Rapid This proposal would rescind $14 million, Rescission proposal no. R21–23 Deployment of Renewable Energy and the estimated remaining amount of one-year Agency: DEPARTMENT OF THE INTERIOR Electric Power Transmission Projects (section funding appropriated in FY 2021 for the Bureau: National Park Service 1705). Section 1705 provided loan guarantees Office of the Ombudsman for Immigration Account: National Recreation and to support the deployment of renewable Detention. The Office is tasked with Preservation (014-1042 2021/2022) power, biofuels, and electric transmission reviewing immigration detention standards, Amount proposed for rescission: $23,000,000 projects, but authority to enter into new loan which is unnecessary and duplicative of guarantees expired in September 2011. monitoring and inspections by other Justification: Enacting this rescission would eliminate the Department of Homeland Security offices, This proposal would rescind $23 million of use of the remaining balances to pay for the including Immigration and Customs the $24 million appropriated in FY 2021 for cost of modifying existing loans and loan Enforcement and the Office of Inspector the Heritage Partnership Program. The guarantees. General. There is no need to add layers of Heritage Partnership Program provides Rescission proposal no. R21–18 bureaucracy when the work is already being funding to National Heritage Areas, which Agency: DEPARTMENT OF HEALTH AND done–especially at such a high cost to are not part of the National Park System. The HUMAN SERVICES taxpayers. Enacting the rescission would lands within heritage areas tend to remain in Bureau: Centers for Disease Control and eliminate the program and streamline the State, local, or private ownership. These Prevention Department’s efforts. grants to State and local entities are not a

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Federal responsibility and consequently do OSHA has no evidence that the program whose results are unclear, do not directly not need Federal dollars. Enacting the leads to improvements in workplace safety affect U.S. national security interests, or act rescission would eliminate the program, and and health. Enacting the rescission would against the interests of the American people. provide minimal resources to close-out and eliminate new grants. Enacting the rescission would provide partial transition the program to the State, local, or Rescission proposal no. R21–27 payments to some organizations to clearly private entities that manage the areas. Agency: DEPARTMENT OF LABOR demonstrate the expectation that they Rescission proposal no. R21–24 Bureau: Departmental Management achieve savings for the United States from Agency: DEPARTMENT OF JUSTICE Account: Salaries and Expenses (016-0165 greater accountability, efficiencies, and work Bureau: Office of Justice Programs 2021/2022) to have equitable cost-sharing among other members. Account: State and Local Law Enforcement Amount proposed for rescission: $60,000,000 Assistance (015-0404/X) Rescission proposal no. R21–30 Justification: Amount proposed for rescission: Agency: DEPARTMENT OF STATE $244,000,000 This proposal would rescind $60 million, Bureau: International Organizations and a portion of the funding appropriated in FY Conferences Justification: 2021 for the Bureau of International Labor Account: Contributions for International The proposal would rescind $244 million, Affairs (ILAB). ILAB provides grants to Peacekeeping Activities (019-1124 2021/ the full amount appropriated in FY 2021 for promote worker protection oversees. ILAB’s 2021) the State Criminal Alien Assistance Program grants do not represent a core Government Amount proposed for rescission: (SCAAP). SCAAP, which reimburses State, function, and many of its grants are awarded $377,000,000 local, and tribal governments for prior year noncompetitively. Enacting the rescission costs associated with incarcerating certain would eliminate funding for ILAB’s grants in Justification: illegal criminal aliens, is unauthorized and FY 2021, but would not impact the funding This proposal would rescind $377 million poorly targeted. This program represents a provided in the United States-Mexico-Canada of the $1.5 billion in funding appropriated in general revenue transfer to States that neither Agreement Implementation Act for grants to FY 2021 for the Contributions to focuses resources on immigration promote worker protection in Mexico. International Peacekeeping Activities (CIPA) enforcement nor fully reimburses their Rescission proposal no. R21–28 account. The CIPA account provides funds detention costs. In 2018, the reimbursement Agency: DEPARTMENT OF STATE for the United States’ contributions toward rate was about 24 cents on the dollar, with Bureau: Administration of Foreign Affairs the expenses associated with United Nations just four States—California, Florida, New Account: Educational and Cultural Exchange (UN) peacekeeping operations for which York, and Texas—receiving over two-thirds Programs (019-0209/X) costs are distributed among UN members of available funds. Enacting the rescission based on a scale of assessments. These funds would eliminate the program for FY 2021. Amount proposed for rescission: constitute U.S. contributions to UN $430,000,000 Rescission proposal no. R21–25 peacekeeping activities in excess of the FY Agency: DEPARTMENT OF LABOR Justification: 2021 Budget request level. Their rescission will reinforce the need for UN constraints on Bureau: Employment and Training This proposal would rescind $430 million peacekeeping costs, elimination of missions Administration of the $740 million appropriated in FY 2021 Account: Training and Employment Services for Educational and Cultural Exchanges as conditions warrant, and achievement of (016-0174 2021/2022) (ECE). Through ECE, the Department of State greater operational and management efficiencies. Enacting the rescission would Amount proposed for rescission: $93,896,000 currently manages over 75 active academic, professional, and cultural exchange not terminate any peacekeeping missions, but Justification: programs. People to people exchange would defer a third of the U.S. payments to The proposal would rescind $94 million, programs no longer need the enacted level of next year, and reinforce the expectation that the full amount appropriated in FY 2021 for funding given that over 1 million students the UN should increase accountability, the Migrant and Seasonal Farmworker typically study in the United States annually reduce costs, and develop a fairer system of Training program (MSFW). The program is without any Department of State support. burden sharing that requires greater duplicative in that it creates a parallel Wasteful examples of exchange programs contributions from other nations. training system for migrant and seasonal include $3 million for various youth Tech Rescission proposal no. R21–31 farmworkers, who are eligible to receive Camps and $4 million for an exchange Agency: DEPARTMENT OF STATE services through the core Workforce program with wealthy . Enacting the Bureau: Other Innovation and Opportunity Act formula rescission would direct the Department of Account: Global Health Programs (019-1031 programs. Two programs providing the same State to reduce the number of exchange 2021/2022) services to the same population is programs to a core few, which would allow Amount proposed for rescission: duplicative and unnecessary. Enacting the the Department to focus its resources on $5,106,000,000 rescission would eliminate MSFW, the those programs that have demonstrated smaller of the two duplicative programs results and support strategic foreign policy Justification: serving the population. objectives that benefit Americans. This proposal would rescind $5.1 billion of Rescission proposal no. R21–26 Rescission proposal no. R21–29 the $7.3 billion appropriated in FY 2021 for Agency: DEPARTMENT OF LABOR Agency: DEPARTMENT OF STATE Global Health Programs, which includes $1.1 Bureau: Occupational Safety and Health Bureau: International Organizations and billion in base funding and $4 billion in Administration Conferences funding designated as an emergency Account: Salaries and Expenses (016-0400 Account: Contributions to International requirement. The Global Health Programs 2021/2021) Organizations (019-1126 2021/2021) account funds activities related to child and Amount proposed for rescission: $11,787,000 Amount proposed for rescission: maternal health, HIV/AIDS, and infectious $540,000,000 diseases. The $1.1 billion in base funding Justification: would fund programs in excess of the This proposal would rescind $12 million, Justification: Administration’s global health goals. The $4 a portion of the $592 million appropriated in This proposal would rescind $540 million billion in funding designated as an FY 2021 for the Occupational Training and of the $1.5 billion in funding appropriated in emergency requirement would provide U.S. Health Administration (OSHA). Through the FY 2021 for the Contributions to funds to support international vaccination Susan Harwood Training Grants program, International Organizations (CIO) account. efforts well in advance of clearly stated U.S. OSHA provides competitive grants to non- The CIO account funds assessments to the policy to vaccinate at-risk populations within profit organizations to develop and conduct United Nations (UN) and other international the United States before supporting occupational safety and health training organizations to which the United States international vaccination efforts. Enacting programs and presentations. This is an belongs. These funds would pay U.S. this rescission would maintain U.S. funding unnecessary and an ineffective practice, and assessments to organizations and programs to meet America’s burden-share target of 25

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percent of all donor contributions and would Crises Fund supports programs to prevent or Justification: increase the incentive for other donors to respond to emerging or unforeseen complex This proposal would rescind $17 million of burden share. crises overseas. These funds would duplicate the $20 million appropriated in FY 2021, the Rescission proposal no. R21–32 efforts for preventing or responding to crises remaining unobligated balance, for The Asia Agency: DEPARTMENT OF STATE overseas and, consequently, are unnecessary Foundation (TAF). TAF is a non-profit Bureau: Other given the existing programs and funds international development organization with Account: Global Health Programs (019-1031 available for complex crises from multiple programs across the region. These funds 2021/2025) other foreign assistance accounts. Enacting would be used to supplement TAF’s Amount proposed for rescission: the rescission would eliminate new funding fundraising, which duplicates activities $2,092,000,000 for this account. carried out by the U.S. Agency for Rescission proposal no. R21–35 International Development. It is highly Justification: unusual for private organizations to receive Agency: DEPARTMENT OF STATE a direct appropriation with no direct This proposal would rescind $2.1 billion of Bureau: Other leadership from the Executive Branch to the $5.9 billion appropriated in FY 2021 to Account: International Narcotics Control and provide oversight. The Administration the Department of State’s Global Health Law Enforcement (011-1022 2021/2022) Programs account to fund the President’s continues to support ending dedicated Emergency Plan for AIDS Relief (PEPFAR). Amount proposed for rescission: funding for organizations that may effectively PEPFAR is an initiative of the U.S. $255,000,000 serve niche missions, but which are not Government to address the global HIV/AIDS Justification: critical to the conduct of U.S. foreign policy epidemic. For bilateral programs, the and which duplicate the efforts of other proposed rescinded funds are well in excess This proposal would rescind $255 million Federal programs or the non-profit and of the FY 2021 Budget request level of $3.8 in unrequested funds of the $1.4 billion private sectors. Enacting the rescission would billion, which, when combined with prior- appropriated in FY 2021 for International eliminate the dedicated appropriation to year excess funding, would fully fund Narcotics Control and Law Enforcement TAF. PEPFAR’s efforts to maintain all patients (INCLE). The INCLE program funds programs Rescission proposal no. R21–38 currently on antiretroviral treatment and to counter illicit trafficking in narcotics, people, wildlife, and other forms of Agency: DEPARTMENT OF STATE would help target countries achieve epidemic Bureau: Other control. For the Global Fund contribution, transnational crime. These funds would be Account: East-West Center (019-0202 2021/ the FY 2021 Budget request level of $658 used for programs that are not needed to 2021) million would keep the United States on implement the Administration’s National track to meet the Administration’s $3.3 Security Strategy or other important policy Amount proposed for rescission: $16,405,000 billion pledge for the Global Fund’s sixth objectives. In addition to eliminating Justification: replenishment by 2022. Enacting this unnecessary funding for a host of bilateral rescission would not affect any funding programs, a portion of the funding proposed This proposal would rescind $16 million of needs for FY 2021. for reduction is earmarked by the Congress the $20 million appropriated in FY 2021, the remaining unobligated balance, for the East- Rescission proposal no. R21–33 for projects that would be considered special interest pet projects if funded domestically. West Center (EWC). EWC is a cultural and Agency: DEPARTMENT OF STATE educational exchange center based in Hawaii. Bureau: Other Enacting the rescission would result in funding key programs with a nexus to U.S. The EWC duplicates activities carried out by Account: Migration and Refugee Assistance the Department of State’s Educational and (019-1143/X) national security, while reducing funding for political pet projects or programs without a Cultural Affairs Bureau, and due to its non- Amount proposed for rescission: profit status can compete for grant funding clear nexus to U.S. national security. $1,771,300,766 rather than receive a dedicated Rescission proposal no. R21–36 appropriation. Enacting the rescission would Justification: Agency: DEPARTMENT OF STATE eliminate EWC’s dedicated appropriation, This proposal would rescind $1.8 billion of Bureau: Other and require the Center to compete for Federal the $3.4 billion appropriated in FY 2021 for Account: Democracy Fund (019-1121 2021/ grant funding to continue operations. the Migration and Refugee Assistance 2022) Rescission proposal no. R21–39 account. The account’s primary purpose is to Amount proposed for rescission: Agency: INTERNATIONAL ASSISTANCE assist refugees and victims of conflict $290,700,000 worldwide through contributions to PROGRAMS international humanitarian organizations and Justification: Bureau: Millennium Challenge Corporation to support the U.S. Government’s program of Account: Millennium Challenge Corporation This proposal would rescind $291 million, (524-2750/X) refugee resettlement in the United States. the full amount appropriated in FY 2021 for Amount proposed for rescission: These funds far exceed the FY 2021 Budget the Democracy Fund. Democracy Fund- $112,000,000 request level for humanitarian assistance, supported programs claim to monitor and which combined with other available promote human rights and democracy Justification: resources average nearly $9 billion worldwide. These types of programs are annually—funding sufficient to allow the This proposal would rescind $112 million funded through multiple other accounts. second highest annual U.S. humanitarian of the $912 million appropriated in FY 2021 Enacting funds through this account assistance programming ever in calendar for the Millennium Challenge Corporation years 2020 and 2021. Enacting the rescission unnecessarily restricts the Administration’s (MCC). MCC provides development would encourage greater contributions from ability to program foreign assistance funds in assistance to address binding constraints to other nations and provide savings to the U.S. priority sectors beyond democracy and economic growth in worthy countries. While taxpayer while retaining America’s position human rights, and when combined with MCC’s programs are generally viewed as as the largest single donor. other accounts, the funding level provided effective, MCC has had difficulty fully exceeds an appropriate foreign assistance Rescission proposal no. R21–34 obligating available funding, resulting in level. Enacting this rescission would Agency: DEPARTMENT OF STATE excessive unobligated balances that currently eliminate new funding for the Democracy exceed $3 billion. Enacting this rescission Bureau: Other Fund. Account: Complex Crises Fund (072-1015/X) will have no programmatic effect as this Rescission proposal no. R21–37 excess funding would only add to the Amount proposed for rescission: $30,000,000 Agency: DEPARTMENT OF STATE program’s unobligated balances. Justification: Bureau: Other Rescission proposal no. R21–40 This proposal would rescind $30 million, Account: Payment to the Asia Foundation Agency: INTERNATIONAL ASSISTANCE the full amount appropriated in FY 2021 for (019-0525/X) PROGRAMS the Complex Crises Fund. The Complex Amount proposed for rescission: $16,617,000 Bureau: International Security Assistance

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Account: Economic Support Fund (072-1037 Bureau: Multilateral Assistance prioritized and funded from within other 2021/2022) Account: Global Environment Facility foreign assistance accounts including Amount proposed for rescission: (011-0066 2021/2022) development and humanitarian assistance $241,040,000 Amount proposed for rescission: programs. $139,575,000 Rescission proposal no. R21–46 Justification: Justification: Agency: INTERNATIONAL ASSISTANCE This proposal would rescind $241 million PROGRAMS of the $3.9 billion appropriated in FY 2021 This proposal would rescind $140 million, Bureau: Multilateral Assistance for the Economic Support Fund (ESF). ESF the full amount appropriated in FY 2021 for Account: Debt Restructuring (011-0091 2021/ is used to provide economic support for contributions to the Global Environment 2023) countries beyond what could be justified as Facility (GEF). The GEF provides funding to Amount proposed for rescission: $15,000,000 development assistance in order to promote developing countries to meet their economic or political stability. These funds commitments under international Justification: were specifically earmarked for the West environmental agreements. The funds This proposal would rescind $15 million, Bank and Gaza, and Burma for democracy, appropriated for the U.S. contribution to the the full amount appropriated in FY 2021 for education, and economic development GEF in FY 2019 and FY 2020 are sufficient Tropical Forest and Coral Reef Conservation programs in addition to $101 million that to complete the U.S. pledge to the GEF Act (TFCCA) program. The TFCCA was earmarked for the Central America without a U.S. contribution in FY 2021 or FY programming can be characterized as a ‘‘debt- Regional Security Initiative. Enacting the 2022, and therefore the funding appropriated for-nature’’ swap, where the U.S. rescission would eliminate this economic in FY 2021 is unnecessary. Enacting the Government offers eligible developing assistance at a time when such resources rescission would have no effect on the U.S countries options to relieve certain official could be better used domestically. Government’s ability to meet its pledge to the debt owed in exchange for those countries Rescission proposal no. R21–41 GEF. engaging in their own tropical forest or coral Agency: INTERNATIONAL ASSISTANCE Rescission proposal no. R21–44 reef conservation activities. These funds do PROGRAMS Agency: INTERNATIONAL ASSISTANCE not support a national security priority and Bureau: International Security Assistance PROGRAMS in fact provide no clear benefit to the United Account: Foreign Military Financing Program Bureau: Multilateral Assistance States. If other countries place value in their (011-1082 2021/2021) Account: Contribution to the International tropical forest or coral reef ecosystems, they Amount proposed for rescission: Fund for Agricultural Development can act independently to provide $500,000,000 (011-1039 2021/2022) conservation without requiring U.S. Amount proposed for rescission: $26,581,000 incentives that benefit them. Enacting the Justification: rescission would eliminate funding for a This proposal would rescind $500 million Justification: program not needed to achieve of the $6.2 billion appropriated in FY 2021 This proposal would rescind $27 million of Administration objectives. for the Foreign Military Financing (FMF) the $33 million appropriated in FY 2021, the Rescission proposal no. R21–47 program. The FMF program provides grant remaining unobligated balance, for payment Agency: INTERNATIONAL ASSISTANCE assistance to provide American-made to the International Fund for Agricultural PROGRAMS military equipment and services to key Development (IFAD). IFAD is a United Bureau: Agency for International partners and allies abroad. The FY 2021 Nations specialized agency that provides Development appropriation for FMF can be significantly agricultural programs focused mainly on Account: Development Assistance (072-1021 reduced consistent with the President’s remote rural areas of poor countries. This 2021/2022) foreign policy priorities and the FY 2021 funding is duplicative and wasteful, as the Amount proposed for rescission: Budget request. Enacting this rescission U.S. Government can better achieve its food $2,220,960,000 would eliminate $500 million in new grants security objectives through its bilateral not requested in the FY 2021 Budget request, foreign assistance programs. Enacting the Justification: but maintain a $5.7 billion annual program, rescission would remove U.S. monetary This proposal would rescind $2.2 billion of which includes fully funding America’s support for IFAD, but not affect achievement the $3.5 billion appropriated in FY 2021 for Memorandum of Understanding of U.S. food security objectives. Development Assistance (DA). DA funds are commitments to Israel and , Rescission proposal no. R21–45 used by the U.S. Agency for International longstanding support for , and other Agency: INTERNATIONAL ASSISTANCE Development to help developing countries Administration priorities such as countering achieve self-sustaining growth. These funds Chinese and Russian influence. PROGRAMS Bureau: Multilateral Assistance have been appropriated in excess of amounts Rescission proposal no. R21–42 Account: International Organizations and needed to implement the National Security Agency: INTERNATIONAL ASSISTANCE Programs (019-1005 2021/2021) Strategy and achieve core U.S. strategic objectives. Enacting the rescission would PROGRAMS Amount proposed for rescission: reduce excess U.S. Government spending in Bureau: International Security Assistance $387,500,000 Account: International Military Education foreign countries on programs related to and Training (011-1081 2021/2021) Justification: governance, education, and social services Amount proposed for rescission: $3,000,000 This proposal would rescind $388 million, which have demonstrated no clear return on investment to U.S. taxpayers at a time when Justification: the full amount appropriated in FY 2021 for the International Organizations and Programs resources are needed for such programs domestically. This proposal would rescind $3 million of account. This account provides voluntary the $113 million appropriated in FY 2021 for contributions to various international Rescission proposal no. R21–48 International Military Education and organizations. These funds would be used for Agency: INTERNATIONAL ASSISTANCE Training. These funds would be used for programs and contributions that are PROGRAMS training and military education in excess of unnecessary or duplicative of other programs Bureau: Agency for International what was identified as necessary to meet the United States already supports and that Development national security objectives in the FY 2021 are not essential to U.S. economic growth or Account: Assistance for Europe, Eurasia and Budget request. Enacting the rescission national security. These funds would be used Central Asia (072-0306 2021/2022) would still provide the necessary funding for for efforts that, in some cases, should be the Amount proposed for rescission: priority programs including new funding for responsibility of individual countries or $770,334,000 countering Russian malign influence. overlap with support already provided under Rescission proposal no. R21–43 other programs. Enacting this rescission Justification: Agency: INTERNATIONAL ASSISTANCE would eliminate this separate funding source This proposal would rescind $770 million, PROGRAMS and would still allow for key programs to be the full amount appropriated in FY 2021 for

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the Assistance for Europe, Eurasia, and small grants made by the U.S. Agency for Account: Water Infrastructure Finance and Central Asia (AEECA) account. The purpose International Development despite a lack of Innovation Program Account (096-3139 of this account is to promote economic and evidence of the effectiveness of small grants 2021/2022) political stability in European, Eurasian, and for achieving development outcomes. Amount proposed for rescission: $2,200,000 Central Asian countries. Priority funding Enacting the rescission would have minimal needed to implement the National Security programmatic impact, while providing costs Justification: Strategy and achieve core U.S. strategic needed to close the organization. This proposal would rescind $2 million, objectives in these countries will be provided Rescission proposal no. R21–52 the full amount appropriated in FY 2021 for through the Economic Support Fund the Army Corps Water Infrastructure Finance Agency: DEPARTMENT OF THE TREASURY account. Enacting the rescission would mean and Innovation program administrative Bureau: Departmental Offices policy priorities in this region would be expenses. The newly established program funded through the same account structure as Account: Community Development Financial would expand the Army Corps, historically from FY 2013 to FY 2015. Institutions Fund Program Account an engineering and construction agency, into Rescission proposal no. R21–49 (020-1881 2021/2021) project finance where it has no expertise Agency: INTERNATIONAL ASSISTANCE Amount proposed for rescission: $15,000,000 providing Federal credit support for water PROGRAMS Justification: resources projects. These funds would be Bureau: Peace Corps used for the administrative costs of the This proposal would rescind $15 million of Account: Peace Corps (011-0100 2021/2022) program. The Army Corps should focus on the $29 million appropriated in FY 2021 for building, not banking. Rescission of these Amount proposed for rescission: $9,000,000 administrative expenses of the Community funds (and the credit subsidy budget Justification: Development Financial Institutions Fund authority) would eliminate appropriated (CDFI Fund). The CDFI Fund administers This proposal would rescind $9 million of funding for the cost of issuing loans or loan discretionary grant and direct loan programs the $411 million appropriated in FY 2021 for guarantees and for associated administrative including the CDFI Program, the Bank the Peace Corps. The Peace Corps seeks to costs. Enterprise Program, the Native American promote world peace and understanding by Rescission proposal no. R21–55 CDFI Assistance Program, the Healthy Food sending volunteers to help meet the basic Agency: CORPS OF ENGINEERS—CIVIL Financing Initiative, the Small Dollar Loan needs of the poorest people in less developed WORKS Program, and the Economic Mobility Corps. countries. The funds are in excess of funds Bureau: Corps of Engineers—Civil Works The CDFI Industry has matured, and these needed by the Peace Corps to further their Account: Water Infrastructure Finance and institutions should have access to private mission. Enacting the rescission would not Innovation Program Account (096-3139/X) capital needed to build capacity, extend affect achieving the programs’ objectives Amount proposed for rescission: $12,000,000 given the difficulty in carrying out these credit, and provide financial services to the programs during the pandemic. communities they serve. Enacting the Justification: rescission would eliminate administrative This proposal would rescind $12 million, Rescission proposal no. R21–50 expenses for the CDFI Fund’s discretionary the full amount appropriated in FY 2021 for Agency: INTERNATIONAL ASSISTANCE grant and direct loan programs. The the Army Corps Water Infrastructure Finance PROGRAMS remaining funds would be used for and Innovation program credit subsidy. The Bureau: Inter-American Foundation administration of the Bond Guarantee newly established program would expand the Account: Inter-American Foundation Program, the New Markets Tax Credit Army Corps, historically an engineering and (011-3100 2021/2022) Program, and other ongoing activity of the construction agency, into project finance Amount proposed for rescission: $29,000,000 CDFI Fund including certification and where it has no expertise providing Federal compliance monitoring for all programs. Justification: credit support for water resources projects. Rescission proposal no. R21–53 This proposal would rescind $29 million of These funds would be used for the subsidy the $38 million appropriated in FY 2021 for Agency: DEPARTMENT OF THE TREASURY costs of issuing loans and guarantees for the Inter-American Foundation (IAF). IAF Bureau: Departmental Offices water resources projects. The Army Corps provides small grants to grassroots civil Account: Community Development Financial should focus on building, not banking. society organizations in Latin America and Institutions Fund Program Account Rescission of these funds (and the two-year the Caribbean to improve the quality of life (020-1881 2021/2022) budget authority for administrative expenses) for the poor, and strengthen participation, Amount proposed for rescission: would eliminate appropriated funding for the accountability, and democratic processes. $241,000,000 cost of issuing loans or loan guarantees and These funds are duplicative of small grants for associated administrative costs. Justification: made by the U.S. Agency for International Rescission proposal no. R21–56 Development despite a lack of evidence of This proposal would rescind $241 million, Agency: ENVIRONMENTAL PROTECTION the effectiveness of small grants for achieving the full amount appropriated in FY 2021 for AGENCY development outcomes. Enacting the the Community Development Financial Bureau: Environmental Protection Agency rescission would have minimal Institutions Fund (CDFI Fund) program Account: Science and Technology (068-0107 programmatic impact, while providing costs awards. The CDFI Fund administers 2021/2022) needed to close the organization. discretionary grant and direct loan programs Amount proposed for rescission: including the CDFI Program, the Bank Rescission proposal no. R21–51 $212,266,000 Enterprise Program, the Native American Agency: INTERNATIONAL ASSISTANCE CDFI Assistance Program, the Healthy Food PROGRAMS Justification: Financing Initiative, the Small Dollar Loan Bureau: African Development Foundation This proposal would rescind $212 million Program, and the Economic Mobility Corps. Account: United States African Development of the $475 million appropriated in FY 2021 The CDFI Industry has matured, and these Foundation (011-0700 2021/2022) in the Science and Technology account for institutions should have access to private Amount proposed for rescission: $23,000,000 the Environmental Protection Agency’s (EPA) capital needed to build capacity, extend Office of Research and Development (ORD). Justification: credit, and provide financial services to the ORD conducts research to support agency communities they serve. Enacting the This proposal would rescind $23 million of decision-making in protecting human health rescission would eliminate funding for the the $33 million appropriated in FY 2021 for and the environment. The appropriated CDFI Fund’s five discretionary grant and the African Development Foundation (ADF). funds would be used for research activities direct loan programs. ADF provides small grants to small that are not required to meet EPA’s statutory businesses, non-governmental organizations, Rescission proposal no. R21–54 obligations, including the issuance of grants and other grassroots groups in Africa to Agency: CORPS OF ENGINEERS—CIVIL for research and fellowships, which do not address social and economic needs of local WORKS serve a central function of the Federal communities. These funds are duplicative of Bureau: Corps of Engineers—Civil Works Government. Enacting the rescission would

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eliminate unnecessary activities in order to control and abatement, and related activities. grants and AmeriCorps Volunteers in Service re-focus the EPA on core environmental These funds represent Federal investment in to America (VISTA) grants. These funds statutory requirements. State environmental activities that go beyond would be used to engage individuals in paid Rescission proposal no. R21–57 EPA’s statutory requirements. Enacting the volunteer service, which does not serve a central function of the Federal Government. Agency: ENVIRONMENTAL PROTECTION rescission would prevent overreach and align Americans are extremely generous in giving AGENCY Federal funding with the requirements laid their time and money to charity, and they Bureau: Environmental Protection Agency out in environmental statutes. make individual decisions about which Account: Environmental Programs and Rescission proposal no. R21–60 charities provide valuable services to society. Management (068-0108 2021/2022) Agency: ENVIRONMENTAL PROTECTION There is little justification for the Federal Amount proposed for rescission: $7,928,358 AGENCY Government to circumvent and centralize Bureau: Environmental Protection Agency Justification: this process through its taxing and spending Account: State and Tribal Assistance Grants decisions. In addition, the Government This proposal would rescind $8 million of (068-0103/X) Accountability Office and the Corporation for the $9 million appropriated in FY 2021, the Amount proposed for rescission: $80,000,000 National and Community Service Inspector remaining unobligated balance, for the General have documented several instances Environmental Protection Agency’s (EPA) Justification: of improper uses of ASN and VISTA grants Environmental Education (EE) program. The This proposal would rescind $80 million of by grantees, including lobbying. Enacting this EE program provides guidance and financial the $90 million appropriated in FY 2021 for rescission would eliminate FY 2021 grant support for education and stewardship the Diesel Emissions Reductions Act (DERA) funding for both the ASN and VISTA activities. The appropriated funds would be program. The program funds grants, loans, programs, while allowing for ongoing used for grants for local education and and rebates to retrofit, rebuild, or replace administration of existing grants, including stewardship projects such as planting school older diesel engines in order to reduce grant closeout activities. gardens, establishing youth summer camps, harmful diesel emissions. The appropriated Rescission proposal no. R21–63 and field trips to local streams, which should amount is unnecessary given that: 1) Agency: CORPORATION FOR NATIONAL not be a funding responsibility of the Federal previous appropriations have significantly Government. Furthermore, these programs AND COMMUNITY SERVICE increased funding for the DERA program may inappropriately encourage political Bureau: Corporation for National and (e.g., a 45 percent increase from FY 2017 to activism among its recipients. Enacting the Community Service FY 2020); 2) pollution emissions from the rescission would eliminate the Account: National Service Trust (485-8267/ legacy fleet will be reduced over time Environmental Education program. X) without additional DERA funding as portions Rescission proposal no. R21–58 Amount proposed for rescission: of the fleet turn over and are replaced with $185,000,000 Agency: ENVIRONMENTAL PROTECTION new engines that meet modern emissions AGENCY standards; and 3) the 2016 settlement with Justification: Bureau: Environmental Protection Agency Volkswagen made $2.7 billion available for This proposal would rescind $185 million, Account: Environmental Programs and similar projects. Enacting the rescission the full amount appropriated in FY 2021 for Management (068-0108 2021/2022) would reduce funding to $10 million for the the National Service Trust account. The Amount proposed for rescission: $9,109,000 program. National Service Trust account provides funds for educational awards to eligible Justification: Rescission proposal no. R21–61 Agency: COMMISSION OF FINE ARTS volunteers who have completed a term of This proposal would rescind $9 million of Bureau: Commission of Fine Arts service. If the proposed rescissions to the the $12 million appropriated in FY 2021 for Account: National Capital Arts and Cultural AmeriCorps State and National and the Environmental Protection Agency’s (EPA) AmeriCorps Volunteers in Service to Affairs (323-2602 2021/2021) Environmental Justice (EJ) program. The America grants are effectuated, these funds excessive appropriated funds would be used Amount proposed for rescission: $5,000,000 would not be necessary and should likewise for the EJ hotline and EJ trainings, which are Justification: be rescinded. Americans are extremely not required to meet EPA’s statutory generous in giving their time and money to obligations. For example, the EJ Small Grants This proposal would rescind $5 million, charity, and they make individual decisions Program has prompted community the full amount appropriated in FY 2021 for about which charities provide valuable gardening, improving the appearance of the National Capital Arts and Cultural Affairs services to society. There is little justification vacant urban lots, documenting land-use grant program. The National Capital Arts and for the Federal Government to circumvent history before urban development, and Cultural Affairs grant program provides and centralize this process through its taxing training residents to participate in public general operating support to larger artistic and spending decisions. Enacting this debates on environmental issues. Enacting and cultural institutions operating in the rescission would prevent the agency from the rescission would streamline the EJ District of Columbia. The Federal providing additional educational awards. program to provide targeted support to EJ Government should not be using taxpayer Rescission proposal no. R21–64 dollars to subsidize local performing arts communities where it can be most effective. Agency: DISTRICT OF COLUMBIA Rescission proposal no. R21–59 organizations including within the District of Columbia, especially when live performances Bureau: District of Columbia General and Agency: ENVIRONMENTAL PROTECTION have been essentially shut down by the Special Payments AGENCY Mayor of the District of Columbia. Enacting Account: Federal Payment for Resident Bureau: Environmental Protection Agency the rescission would eliminate the program. Tuition Support (020-1736/X) Account: State and Tribal Assistance Grants Amount proposed for rescission: $40,000,000 (068-0103/X) Rescission proposal no. R21–62 Justification: Amount proposed for rescission: Agency: CORPORATION FOR NATIONAL $509,053,000 AND COMMUNITY SERVICE This proposal would rescind $40 million, Bureau: Corporation for National and the full amount appropriated to the District Justification: Community Service of Columbia (DC) in FY 2021 for Resident This proposal would rescind $509 million Account: Operating Expenses (485-2728 Tuition Support. These funds would be used of the $1.1 billion appropriated in FY 2021 2021/2021) to subsidize college tuition costs for DC for the Environmental Protection Agency’s Amount proposed for rescission: residents at the expense of Federal taxpayers. (EPA) Categorical Grants. These programs $483,469,244 DC residents seeking to enroll in college are fund grants, including associated program eligible for Federal programs available to all support costs, for States, federally recognized Justification: Americans, including Pell Grants, Federal Tribes, interstate agencies, tribal consortia, This proposal would rescind $483 million student loans, and the American Opportunity and air pollution control agencies for multi- of the $843 million appropriated in FY 2021 Tax Credit. Enacting the rescission would media or single media pollution prevention, for the AmeriCorps State and National (ASN) eliminate the program.

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Rescission proposal no. R21–65 the Presidio Trust. The Presidio Trust is the Amount proposed for rescission: $9,514,500 Agency: DISTRICT OF COLUMBIA Government agency charged with operating Justification: Bureau: District of Columbia General and the Presidio of San Francisco outdoor Special Payments recreation and sightseeing park without This proposal would rescind $10 million of Account: Federal Payment to the District of taxpayer support. This unrequested funding the $13 million appropriated in FY 2021, the Columbia Water and Sewer Authority amounts to a congressional earmark for the estimated remaining balance, for the U.S. (020-4446/X) Trust, which otherwise operates using lease Botanic Garden. The Botanic Garden is a revenues and other non-federally Amount proposed for rescission: $8,000,000 museum that seeks to demonstrate the appropriated funding sources. Enacting the aesthetic, cultural, economic, therapeutic, Justification: rescission would require the Trust to meet its and ecological importance of plants to the mission using current resources. This proposal would rescind $8 million, well-being of humankind. These funds would the full amount appropriated in FY 2021 for Rescission proposal no. R21–69 be used for the operating budget of the the Federal Payment to the District of Agency: NATIONAL GALLERY OF ART congressional Botanic Garden, which is not Columbia (DC) Water and Sewer Authority. Bureau: National Gallery of Art a core Article I legislative function. Enacting These funds would be used for the Account: Salaries and Expenses (033-0200 the rescission would eliminate taxpayer implementation of the Combined Sewer 2021/2022) support for the program. Overflow Long-Term Plan, which should be Amount proposed for rescission: $6,068,000 Rescission proposal no. R21–73 paid by ratepayers in the District, not Federal Agency: LEGISLATIVE BRANCH taxpayers. Enacting the rescission would Justification: Bureau: Botanic Garden eliminate Federal supplemental funding for This proposal would rescind $6 million of Account: Botanic Garden (009-0200 2021/ this project but would not eliminate the the $153 million appropriated for operations 2025) District’s progress on the program. and maintenance of the National Gallery of Amount proposed for rescission: $6,225,000 Rescission proposal no. R21–66 Art, which houses a collection of both American and European art. These funds are Justification: Agency: NATIONAL ENDOWMENT FOR not necessary to meet the Federal obligations THE ARTS This proposal would rescind $6 million of that sustain the National Gallery’s mission. Bureau: National Endowment for the Arts the $8 million appropriated in FY 2021, the Enacting the rescission would reduce the Account: Grants and Administration estimated remaining balance, for the U.S. amount provided to the level requested in the Botanic Garden. The Botanic Garden is a (417-0100/X) FY 2021 Budget to more effectively allocate museum that seeks to demonstrate the Amount proposed for rescission: the American people’s money. aesthetic, cultural, economic, therapeutic, $110,000,000 Rescission proposal no. R21–70 and ecological importance of plants to the Justification: Agency: NATIONAL GALLERY OF ART well-being of humankind. These funds would Bureau: National Gallery of Art be used for special project staffing, facility This proposal would rescind $110 million improvements, and minor construction for of the $168 million appropriated for Account: Repair, Restoration and Renovation of Buildings (033-0201/X) the congressional Botanic Garden, which is operations of the National Endowment for not a core Article I legislative function. Amount proposed for rescission: $8,790,000 the Arts. The National Endowment for the Enacting the rescission would eliminate Arts provides assistance to organizations and Justification: taxpayer support for the program. individuals for projects and productions in the arts. These grants are not a Federal This proposal would rescind $9 million of [FR Doc. 2021–01328 Filed 1–21–21; 8:45 am] responsibility and consequently do not need the $23 million appropriated for upkeep of BILLING CODE 3110–01–P Federal dollars. Enacting the rescission the facilities of the National Gallery of Art, would allow orderly termination of the which houses a collection of both American agency as requested in the FY 2021 Budget. and European art. These funds are not necessary to meet the Federal obligations that NUCLEAR REGULATORY Rescission proposal no. R21–67 sustain the National Gallery’s mission. COMMISSION Agency: NATIONAL ENDOWMENT FOR Enacting the rescission would reduce the [NRC–2011–0272] THE HUMANITIES amount provided to the level requested in the Bureau: National Endowment for the FY 2021 Budget. Knowledge and Abilities Catalog for Humanities Rescission proposal no. R21–71 Nuclear Power Plant Operators: Account: Grants and Administration Agency: WOODROW WILSON (418-0200/X) Westinghouse AP1000 Pressurized INTERNATIONAL CENTER FOR Water Reactors Amount proposed for rescission: SCHOLARS $118,000,000 Bureau: Woodrow Wilson International AGENCY: Nuclear Regulatory Center for Scholars Justification: Commission. Account: Salaries and Expenses (033-0400 This proposal would rescind $118 million 2021/2022) ACTION: NUREG; issuance. of the $168 million appropriated for Amount proposed for rescission: $5,800,000 operations of the National Endowment for SUMMARY: The U.S. Nuclear Regulatory the Humanities. The National Endowment for Justification: Commission (NRC) is issuing NUREG– the Humanities provides assistance to This proposal would rescind $6 million of 2103, ‘‘Knowledge and Abilities Catalog organizations for support of activities in the the $14 million appropriated for operations for Nuclear Power Plant Operators: humanities. These grants are not a Federal of the Woodrow Wilson Center. The Center Westinghouse AP1000 Pressurized responsibility and consequently do not need supports scholars with both public and Water Reactors.’’ Federal dollars. Enacting the rescission private funds, however the Center is DATES: NUREG–2103 is effective on would allow orderly termination of the consistently appropriated in excess of the January 22, 2021. agency as requested in the FY 2021 Budget. amount deemed necessary for core Federal ADDRESSES: Rescission proposal no. R21–68 responsibilities and activities. Enacting the Please refer to Docket ID NRC–2011–0272 when contacting the Agency: PRESIDIO TRUST rescission would reduce the amount Bureau: Presidio Trust provided to a level equal to funding NRC about the availability of Account: Presidio Trust (95-4331/X) requested in the FY 2021 Budget. information regarding this document. Amount proposed for rescission: $20,000,000 Rescission proposal no. R21–72 You may obtain publicly available Agency: LEGISLATIVE BRANCH information related to this document Justification: Bureau: Botanic Garden using any of the following methods: This proposal would rescind $20 million, Account: Botanic Garden (009-0200 2021/ • Federal Rulemaking website: Go to the full amount appropriated in FY 2021 for 2021) https://www.regulations.gov and search

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for Docket ID NRC–2011–0272. Address evaluation and resolution of the public DATES: The due date of comments questions about Docket IDs to Jennifer comments are documented in ADAMS requested in the document published on Borges; telephone: 301–287–9127; under Accession No. ML18240A235. December 8, 2020 (85 FR 79044) is email: [email protected]. For Following issuance of the draft NUREG– extended. Comments should be filed no technical questions, contact the 2103 for public comment, additional later than April 8, 2021. Comments individual listed in the FOR FURTHER operating procedures were developed received after this date will be INFORMATION CONTACT section of this for the AP1000, which resulted in the considered, if it is practical to do so, but document. NRC staff adding related content to the the Commission is able to ensure • NRC’s Agencywide Documents KA catalog. consideration only for comments Access and Management System received on or before this date. III. Congressional Review Act (ADAMS): You may obtain publicly ADDRESSES: You may submit comments available documents online in the This NUREG is a rule as defined in by any of the following methods; ADAMS Public Documents collection at the Congressional Review Act (5 U.S.C. however, the NRC encourages electronic https://www.nrc.gov/reading-rm/ 801–808). However, the Office of comment submission through the adams.html. To begin the search, select Management and Budget has not found Federal Rulemaking website: ‘‘Begin Web-based ADAMS Search.’’ For this NUREG to be a major rule as • Federal Rulemaking website: Go to problems with ADAMS, please contact defined in the Congressional Review https://www.regulations.gov and search the NRC’s Public Document Room (PDR) Act. for Docket ID NRC–2020–0192. Address reference staff at 1–800–397–4209, 301– Dated: January 15, 2021. questions about Docket IDs in 415–4737, or by email to pdr.resource@ For the Nuclear Regulatory Commission. regulations.gov to Jennifer Borges; nrc.gov. NUREG–2103 is available in Christian B. Cowdrey, telephone: 301–287–9127; email: ADAMS under Accession No. [email protected]. For technical Chief, Operator Licensing and Human ML20357A103. This document is also Performance Branch, Division of Reactor questions, contact the individual listed available on the NRC’s public website at Oversight, Office of Nuclear Reactor in the FOR FURTHER INFORMATION https://www.nrc.gov/reading-rm/doc- Regulation. CONTACT section of this document. • collections/nuregs/. [FR Doc. 2021–01406 Filed 1–21–21; 8:45 am] Mail comments to: Office of • Administration, Mail Stop: TWFN–7– Attention: The PDR, where you may BILLING CODE 7590–01–P examine and order copies of public A60M, U.S. Nuclear Regulatory documents, is currently closed. You Commission, Washington, DC 20555– may submit your request to the PDR via NUCLEAR REGULATORY 0001, ATTN: Program Management, email at [email protected] or call 1– COMMISSION Announcements and Editing Staff. 800–397–4209 or 301–415–4737, For additional direction on obtaining between 8:00 a.m. and 4:00 p.m. (EST), [NRC–2020–0192] information and submitting comments, Monday through Friday, except Federal see ‘‘Obtaining Information and holidays. Consolidated Decommissioning Submitting Comments’’ in the The NRC’s NUREGs are not Guidance, Characterization, Survey, SUPPLEMENTARY INFORMATION section of copyrighted, and NRC approval is not and Determination of Radiological this document. required to reproduce them. Criteria FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: AGENCY: Nuclear Regulatory Cynthia Barr, Office of Nuclear Material Lauren Nist, Office of Nuclear Reactor Commission. Safety and Safeguards; U.S. Nuclear Regulatory Commission, Washington, Regulation; U.S. Nuclear Regulatory ACTION: Draft NUREG; request for DC 20555 0001; telephone: 301 415– Commission, Washington DC 20555– comment; extension of comment period; 4015; email: [email protected]. 0001; telephone: 301–415–6043, email: public meeting. [email protected]. SUPPLEMENTARY INFORMATION: SUPPLEMENTARY INFORMATION: SUMMARY: On December 8, 2020, the I. Obtaining Information and U.S. Nuclear Regulatory Commission Submitting Comments I. Discussion (NRC) issued a draft report for comment, NUREG–2103 provides the basis for NUREG–1757, Volume 2, Revision 2, A. Obtaining Information development of content valid ‘‘Consolidated Decommissioning Please refer to Docket ID NRC–2020– examinations used for licensing Guidance, Characterization, Survey, and 0192 when contacting the NRC about operators at Westinghouse AP1000 Determination of Radiological Criteria.’’ the availability of information for this pressurized water reactors under the The public comment period was action. You may obtain publicly Commission’s regulations contained in originally scheduled to close on available information related to this part 55 of title 10 of the Code of Federal February 8, 2021. The NRC has decided action by any of the following methods: Regulations (10 CFR), ‘‘Operator to extend the public comment period to • Federal Rulemaking website: Go to Licenses.’’ The examinations developed allow more time for members of the https://www.regulations.gov and search using NUREG–2103 along with NUREG– public to develop and submit their for Docket ID NRC–2020–0192. 1021, ‘‘Operator Licensing Examination comments. Additionally, the NRC staff • NRC’s Agencywide Documents Standards for Power Reactors,’’ will would like to announce that it will hold Access and Management System sample the topics listed in 10 CFR part a public meeting on Monday, March 15, (ADAMS): You may obtain publicly 55. 2021, to discuss updates to the guidance available documents online in the document and provide members of the ADAMS Public Documents collection at II. Additional Information public an opportunity to comment on https://www.nrc.gov/reading-rm/ Draft NUREG–2103 was published in the draft guidance document. Details adams.html. To begin the search, select the Federal Register for public comment regarding the public meeting and ‘‘Begin Web-based ADAMS Search.’’ For on November 29, 2011 (76 FR 73720). agenda will be forthcoming on the problems with ADAMS, please contact The comment period closed on NRC’s public website https:// the NRC’s Public Document Room (PDR) December 31, 2016. The NRC staff’s www.nrc.gov/pmns/mtg. reference staff at 1–800–397–4209, 301–

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415–4737, or by email to pdr.resource@ the public meeting and agenda will be • NRC’s Agencywide Documents nrc.gov. NUREG–1757, Volume 2, forthcoming on the NRC’s public Access and Management System Revision 2, is located at ADAMS website https://www.nrc.gov/pmns/mtg. (ADAMS): You may obtain publicly Accession Number ML20273A010. Dated: January 14, 2021. available documents online in the • Attention: The PDR, where you may For the Nuclear Regulatory Commission. ADAMS Public Documents collection at examine and order copies of public https://www.nrc.gov/reading-rm/ Patricia K. Holahan, documents, is currently closed. You adams.html. To begin the search, select may submit your request to the PDR via Director, Division of Decommissioning, ‘‘Begin Web-based ADAMS Search.’’ For Uranium Recovery, and Waste Programs, email at [email protected] or call 1– problems with ADAMS, please contact 800–397–4209 or 301–415–4737 Office of Nuclear Material Safety and Safeguards. the NRC’s Public Document Room (PDR) between 8:00 a.m. and 4:00 p.m. (EST), reference staff at 1–800–397–4209, 301– [FR Doc. 2021–01379 Filed 1–21–21; 8:45 am] Monday through Friday, except Federal 415–4737, or by email to BILLING CODE 7590–01–P holidays. [email protected]. The ADAMS B. Submitting Comments accession number for each document referenced (if it is available in ADAMS) The NRC encourages electronic NUCLEAR REGULATORY COMMISSION is provided the first time that it is comment submission through the mentioned in this document. Federal Rulemaking website (https:// [Docket Nos. 50–266 and 50–301; NRC– • Public Library: A copy of the www.regulations.gov). Please include 2021–0021] subsequent license renewal application Docket ID NRC–2020–0192 in your for Point Beach can be accessed at the NextEra Energy Point Beach, LLC; comment submission. following public library (however, the The NRC cautions you not to include Point Beach Nuclear Plant, Units 1 library is currently closed due to the identifying or contact information that and 2 Coronavirus Disease 2019 public health you do not want to be publicly AGENCY: emergency and, accordingly, access will disclosed in your comment submission. Nuclear Regulatory be available once the library has The NRC will post all comment Commission. reopened): Lester Public Library, 1001 submissions at https:// ACTION: Subsequent license renewal Adams St., Two Rivers, Wisconsin www.regulations.gov as well as enter the application; opportunity to request a 54241. In addition, the application can comment submissions into ADAMS. hearing and to petition for leave to be accessed on the website of the Lester The NRC does not routinely edit intervene. Public Library at http:// comment submissions to remove SUMMARY: The U.S. Nuclear Regulatory www.lesterlibrary.org. identifying or contact information. Commission (NRC) is considering an • If you are requesting or aggregating NRC’s PDR: The PDR, where you application for the subsequent renewal comments from other persons for may examine and order copies of public of Renewed Facility Operating License submission to the NRC, then you should documents, is currently closed. You Nos. DPR–24 and DPR–27, which inform those persons not to include may submit your request to the PDR via authorize NextEra Energy Point Beach, identifying or contact information that email at [email protected] or call LLC (NextEra, the applicant) to operate they do not want to be publicly 1–800–397–4209 or 301–415–4737 Point Beach Nuclear Plant, Units 1 and disclosed in their comment submission. between 8:00 a.m. and 4:00 p.m. (EST), 2 (Point Beach), respectively. The Your request should state that the NRC Monday through Friday, except Federal subsequent renewed operating licenses does not routinely edit comment holidays. would authorize the applicant to submissions to remove such information FOR FURTHER INFORMATION CONTACT: Bill operate Point Beach for an additional 20 before making the comment Rogers, Office of Nuclear Reactor years beyond the period specified in submissions available to the public or Regulation, U.S. Nuclear Regulatory each of the current renewed operating entering the comment into ADAMS. Commission, Washington DC 20555– licenses. The current renewed operating 0001; telephone: 301–415–2945, email: II. Discussion licenses for Point Beach expire as [email protected]. follows: Unit 1 on October 5, 2030, and On December 8, 2020 (85 FR 79044), SUPPLEMENTARY INFORMATION: the NRC issued for public comment Unit 2 on March 8, 2033. draft NUREG–1757, Volume 2, Revision DATES: A request for a hearing or I. Introduction 2, ‘‘Consolidated Decommissioning petition for leave to intervene must be By letter dated November 16, 2020 Guidance, Characterization, Survey, and filed by March 23, 2021. (ADAMS Package Accession No. Determination of Radiological Criteria.’’ ADDRESSES: Please refer to Docket ID ML20329A292), NextEra filed an The purpose was to provide interested NRC–2021–0021 when contacting the application pursuant to part 54 of title stakeholders an opportunity to comment NRC about the availability of 10 of the Code of Federal Regulations on the draft guidance document. The information regarding this document. (10 CFR) for subsequent renewal of the public comment period was originally You may obtain publicly available renewed operating licenses for Point scheduled to close on February 8, 2021. information related to this document Beach, which authorize each unit to The NRC has decided to extend the using any of the following methods: operate at 1,800 megawatts thermal. The public comment period on this • Federal Rulemaking website: Go to Point Beach units are pressurized-water document until April 8, 2021, to allow https://www.regulations.gov and search reactors designed by Westinghouse more time for members of the public to for Docket ID NRC–2021–0021. Address Electric Company and are located near submit their comments. Additionally, questions about Docket IDs in Manitowoc, Wisconsin. A notice of the NRC staff will hold a public meeting Regulations.gov to Jennifer Borges; receipt of the subsequent license on Monday, March 15, 2021, to discuss telephone: 301–287–9127; email: renewal application (SLRA) was updates to the guidance document and [email protected]. For technical published in the Federal Register (FR) provide members of the public an questions, contact the individual listed on December 29, 2020 (85 FR 85685). opportunity to comment on the draft in the FOR FURTHER INFORMATION By letter dated January 15, 2021 guidance document. Details regarding CONTACT section of this document. (ADAMS Accession No. ML21006A417),

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the NRC staff determined that NextEra (petitioner) whose interest may be that party’s admitted contentions, has submitted sufficient information in affected by this action may file a request including the opportunity to present accordance with 10 CFR 54.19, 54.21, for a hearing and petition for leave to evidence, consistent with the NRC’s 54.22, 54.23, 51.45, and 51.53(c), to intervene (petition) with respect to the regulations, policies, and procedures. enable the staff to undertake a review of action. Petitions shall be filed in Petitions must be filed no later than the application, and that the application accordance with the Commission’s 60 days from the date of publication of is, therefore, acceptable for docketing. ‘‘Agency Rules of Practice and this notice. Petitions and motions for The current Docket Nos. 50–266 and Procedure’’ in 10 CFR part 2. Interested leave to file new or amended 50–301 for Renewed Facility Operating persons should consult a current copy contentions that are filed after the License Nos. DPR–24 and DPR–27, of 10 CFR 2.309. The NRC’s regulations deadline will not be entertained absent respectively, will be retained. The are accessible electronically from the a determination by the presiding officer determination to accept the SLRA for NRC Library on the NRC’s website at that the filing demonstrates good cause docketing does not constitute a https://www.nrc.gov/reading-rm/doc- by satisfying the three factors in 10 CFR determination that subsequent renewed collections/cfr/. If a petition is filed, the 2.309(c)(1)(i) through (iii). The petition operating licenses should be issued, and Commission or a presiding officer will must be filed in accordance with the does not preclude the NRC staff from rule on the petition and, if appropriate, filing instructions in the ‘‘Electronic requesting additional information as the a notice of hearing will be issued. Submissions (E-Filing)’’ section of this review proceeds. As required by 10 CFR 2.309(d), the document. Before issuance of the requested petition should specifically explain the A State, local governmental body, subsequent renewed operating licenses, reasons why intervention should be Federally recognized Indian Tribe, or the NRC will have made the findings permitted with particular reference to agency thereof, may submit a petition to required by the Atomic Energy Act of the following general requirements for the Commission to participate as a party 1954, as amended (the Act), and the standing: (1) The name, address, and under 10 CFR 2.309(h)(1). The petition Commission’s rules and regulations. In telephone number of the petitioner; (2) should state the nature and extent of the accordance with 10 CFR 54.29, the NRC the nature of the petitioner’s right under petitioner’s interest in the proceeding. may issue a renewed license on the the Act to be made a party to the The petition should be submitted to the basis of its review if it finds that actions proceeding; (3) the nature and extent of Commission no later than 60 days from have been identified and have been or the petitioner’s property, financial, or the date of publication of this notice. will be taken with respect to: (1) other interest in the proceeding; and (4) The petition must be filed in accordance Managing the effects of aging during the the possible effect of any decision or with the filing instructions in the period of extended operation on the order which may be entered in the ‘‘Electronic Submission (E-Filing)’’ functionality of structures and proceeding on the petitioner’s interest. section of this document, and should components that have been identified as In accordance with 10 CFR 2.309(f), meet the requirements for petitions set requiring aging management review; the petition must also set forth the forth in this section, except that under and (2) time-limited aging analyses that specific contentions that the petitioner 10 CFR 2.309(h)(2) a State, local have been identified as requiring seeks to have litigated in the governmental body, or Federally review, such that there is reasonable proceeding. Each contention must recognized Indian Tribe, or agency assurance that the activities authorized consist of a specific statement of the thereof does not need to address the by the renewed license will continue to issue of law or fact to be raised or standing requirements in 10 CFR be conducted in accordance with the controverted. In addition, the petitioner 2.309(d) if the facility is located within current licensing basis and that any must provide a brief explanation of the its boundaries. Alternatively, a State, changes made to the plant’s current bases for the contention and a concise local governmental body, Federally licensing basis will comply with the Act statement of the alleged facts or expert recognized Indian Tribe, or agency and the Commission’s regulations. opinion that support the contention and thereof may participate as a non-party Additionally, in accordance with 10 on which the petitioner intends to rely under 10 CFR 2.315(c). CFR 51.95(c), the NRC will prepare an in proving the contention at the hearing. If a petition is submitted, any person environmental impact statement as a The petitioner must also provide who is not a party to the proceeding and supplement to the Commission’s references to the specific sources and is not affiliated with or represented by NUREG–1437, ‘‘Generic Environmental documents on which the petitioner a party may, in the discretion of the Impact Statement for License Renewal intends to rely to support its position on presiding officer, be permitted to make of Nuclear Power Plants,’’ dated June the issue. The petition must include a limited appearance pursuant to the 2013. In considering the SLRA, the sufficient information to show that a provisions of 10 CFR 2.315(a). A person Commission must find that the genuine dispute exists with the making a limited appearance may make applicable requirements of subpart A of applicant or licensee on a material issue an oral or written statement of his or her 10 CFR part 51 have been satisfied, and of law or fact. Contentions must be position on the issues but may not that any matters raised under 10 CFR limited to matters within the scope of otherwise participate in the proceeding. 2.335 have been addressed. Pursuant to the proceeding. The contention must be A limited appearance may be made at 10 CFR 51.26, and as part of the one which, if proven, would entitle the any session of the hearing or at any environmental scoping process, the NRC petitioner to relief. A petitioner who prehearing conference, subject to the staff intends to hold public scoping fails to satisfy the requirements at 10 limits and conditions as may be meetings. Detailed information CFR 2.309(f) with respect to at least one imposed by the presiding officer. Details regarding the environmental scoping contention will not be permitted to regarding the opportunity to make a meetings will be the subject of a participate as a party. limited appearance will be provided by separate Federal Register notice. Those permitted to intervene become the presiding officer if such sessions are parties to the proceeding, subject to any scheduled. II. Opportunity To Request a Hearing limitations in the order granting leave to and Petition for Leave To Intervene intervene. Parties have the opportunity III. Electronic Submissions (E-Filing) Within 60 days after the date of to participate fully in the conduct of the All documents filed in NRC publication of this notice, any person hearing with respect to resolution of adjudicatory proceedings, including a

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request for hearing and petition for p.m. Eastern Time on the due date. reason for granting the exemption from leave to intervene (petition), any motion Upon receipt of a transmission, the E- use of E-Filing no longer exists. or other document filed in the Filing system time-stamps the document Documents submitted in adjudicatory proceeding prior to the submission of a and sends the submitter an email notice proceedings will appear in the NRC’s request for hearing or petition to confirming receipt of the document. The electronic hearing docket which is intervene, and documents filed by E-Filing system also distributes an email available to the public at https:// interested governmental entities that notice that provides access to the adams.nrc.gov/ehd, unless excluded request to participate under 10 CFR document to the NRC’s Office of the 2.315(c), must be filed in accordance General Counsel and any others who pursuant to an order of the Commission with the NRC’s E-Filing rule (72 FR have advised the Office of the Secretary or the presiding officer. If you do not 49139; August 28, 2007, as amended at that they wish to participate in the have an NRC-issued digital ID certificate 77 FR 46562, August 3, 2012). The E- proceeding, so that the filer need not as described above, click ‘‘cancel’’ when Filing process requires participants to serve the document on those the link requests certificates and you submit and serve all adjudicatory participants separately. Therefore, will be automatically directed to the documents over the internet, or in some applicants and other participants (or NRC’s electronic hearing docket where cases to mail copies on electronic their counsel or representative) must you will be able to access any publicly storage media. Detailed guidance on apply for and receive a digital ID available documents in a particular making electronic submissions may be certificate before adjudicatory hearing docket. Participants are found in the Guidance for Electronic documents are filed so that they can requested not to include personal Submissions to the NRC and on the obtain access to the documents via the privacy information, such as social NRC’s website at https://www.nrc.gov/ E-Filing system. security numbers, home addresses, or site-help/e-submittals.html. Participants A person filing electronically using personal phone numbers in their filings, may not submit paper copies of their the NRC’s adjudicatory E-Filing system unless an NRC regulation or other law filings unless they seek an exemption in may seek assistance by contacting the requires submission of such accordance with the procedures NRC’s Electronic Filing Help Desk information. For example, in some described below. through the ‘‘Contact Us’’ link located instances, individuals provide home To comply with the procedural on the NRC’s public website at https:// addresses in order to demonstrate requirements of E-Filing, at least 10 www.nrc.gov/site-help/e- proximity to a facility or site. With days prior to the filing deadline, the submittals.html, by email to respect to copyrighted works, except for participant should contact the Office of [email protected], or by a toll- limited excerpts that serve the purpose the Secretary by email at free call at 1–866–672–7640. The NRC of the adjudicatory filings and would [email protected], or by telephone Electronic Filing Help Desk is available at 301–415–1677, to request (1) a digital between 9 a.m. and 6 p.m., Eastern constitute a Fair Use application, identification (ID) certificate, which Time, Monday through Friday, participants are requested not to include allows the participant (or its counsel or excluding government holidays. copyrighted materials in their representative) to digitally sign Participants who believe that they submission. submissions and access the E-Filing have a good cause for not submitting Information about subsequent license system for any proceeding in which it documents electronically must file an renewal can be found on the NRC’s is participating; and (2) advise the exemption request, in accordance with website at https://www.nrc.gov/reactors/ Secretary that the participant will be 10 CFR 2.302(g), with their initial paper operating/licensing/renewal/ submitting a request or other filing stating why there is good cause for subsequent-license-renewal.html. A adjudicatory document (even in not filing electronically and requesting copy of the application for subsequent instances in which the participant, or its authorization to continue to submit renewal of the renewed operating counsel or representative, already holds documents in paper format. Such filings licenses for Point Beach is available on an NRC-issued digital ID certificate). must be submitted by: (1) First class the NRC’s website at https:// Based upon this information, the mail addressed to the Office of the www.nrc.gov/docs/ML2032/ Secretary of the Commission, U.S. Secretary will establish an electronic ML20329A292.html, while the docket for the hearing in this proceeding Nuclear Regulatory Commission, application is under review. The if the Secretary has not already Washington, DC 20555–0001, Attention: application may be accessed in ADAMS established an electronic docket. Rulemaking and Adjudications Staff; or Information about applying for a (2) courier, express mail, or expedited through the NRC Library on the NRC’s digital ID certificate is available on the delivery service to the Office of the website at https://www.nrc.gov/reading- NRC’s public website at https:// Secretary, 11555 Rockville Pike, rm/adams.html under ADAMS Package www.nrc.gov/site-help/e-submittals/ Rockville, Maryland 20852, Attention: Accession No. ML20329A292. Persons getting-started.html. Once a participant Rulemaking and Adjudications Staff. who do not have access to ADAMS or has obtained a digital ID certificate and Participants filing adjudicatory who encounter problems in accessing a docket has been created, the documents in this manner are the documents located in ADAMS may participant can then submit responsible for serving the document on contact the NRC’s PDR reference staff at adjudicatory documents. Submissions all other participants. Filing is 1–800–397–4209, 301–415–4737, or by must be in Portable Document Format considered complete by first-class mail email to [email protected]. (PDF). Additional guidance on PDF as of the time of deposit in the mail, or Dated: January 15, 2021. submissions is available on the NRC’s by courier, express mail, or expedited For the Nuclear Regulatory Commission. public website at https://www.nrc.gov/ delivery service upon depositing the site-help/electronic-sub-ref-mat.html. A document with the provider of the Lauren K. Gibson, filing is considered complete at the time service. A presiding officer, having Chief, License Renewal Projects Branch, the document is submitted through the granted a request for exemption from Division of New and Renewed Licenses, Office NRC’s E-Filing system. To be timely, an using E-Filing, may require a participant of Nuclear Reactor Regulation. electronic filing must be submitted to or party to use E-Filing if the presiding [FR Doc. 2021–01410 Filed 1–21–21; 8:45 am] the E-Filing system no later than 11:59 officer subsequently determines that the BILLING CODE 7590–01–P

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POSTAL REGULATORY COMMISSION Commission’s website (http:// Institution and settlement of www.prc.gov). injunctive actions; [Docket No. T2021–1; Order No. 5817] The Commission appoints Jennaca D. Institution and settlement of Income Tax Review Upperman to serve as Public administrative proceedings; Representative in this docket. Resolution of litigation claims; and AGENCY: Postal Regulatory Commission. III. Ordering Paragraphs Other matters relating to enforcement ACTION: Notice. proceedings. It is ordered: At times, changes in Commission SUMMARY: The Commission is 1. The Commission establishes Docket priorities require alterations in the recognizing a recent Postal Service filing No. T2021–1 to consider the calculation scheduling of meeting agenda items that concerning the calculation of the of the assumed Federal income tax on may consist of adjudicatory, assumed Federal income tax on competitive products for FY 2020. examination, litigation, or regulatory competitive products income for Fiscal 2. Pursuant to 39 U.S.C. 505, Jennaca matters. Year 2020. This notice informs the D. Upperman is appointed to serve as an CONTACT PERSON FOR MORE INFORMATION: public of the filing, invites public officer of the Commission to represent For further information; please contact comment, and takes other the interests of the general public in this Vanessa A. Countryman from the Office administrative steps. proceeding (Public Representative). of the Secretary at (202) 551–5400. DATES: Comments are due: March 5, 3. Comments are due no later than 2021. March 5, 2021. Dated: January 19, 2021. 4. The Secretary shall arrange for Vanessa A. Countryman, ADDRESSES: Submit comments publication of this Order in the Federal electronically via the Commission’s Secretary. Register. Filing Online system at http:// [FR Doc. 2021–01530 Filed 1–19–21; 4:15 pm] www.prc.gov. Those who cannot submit By the Commission. BILLING CODE 8011–01–P comments electronically should contact Erica A. Barker, the person identified in the FOR FURTHER Secretary. SECURITIES AND EXCHANGE INFORMATION CONTACT section by [FR Doc. 2021–01390 Filed 1–21–21; 8:45 am] COMMISSION telephone for advice on filing BILLING CODE 7710–FW–P alternatives. [Release No. 34–90933; File No. SR–IEX– FOR FURTHER INFORMATION CONTACT: 2021–01] David A. Trissell, General Counsel, at SECURITIES AND EXCHANGE Self-Regulatory Organizations: 202–789–6820. COMMISSION Investors Exchange LLC; Notice of SUPPLEMENTARY INFORMATION: Sunshine Act Meetings Filing and Immediate Effectiveness of Table of Contents a Proposed Rule Change To Modify the TIME AND DATE: 2:00 p.m. on Wednesday, Way It Handles Odd Lot Orders by I. Introduction January 27, 2021. Allowing Them To Be Displayed II. Notice of Commission Action III. Ordering Paragraphs PLACE: The meeting will be held via Orders and To Aggregate To Form a remote means and/or at the Protected Quotation I. Introduction Commission’s headquarters, 100 F January 15, 2021. In accordance with 39 U.S.C. 3634 Street NE, Washington, DC 20549. Pursuant to Section 19(b)(1) of the and 39 CFR 3060.40 et seq., the Postal STATUS: This meeting will be closed to Securities Exchange Act of 1934 Service filed its calculation of the the public. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 assumed Federal income tax on MATTERS TO BE CONSIDERED: competitive products income for fiscal notice is hereby given that on January 6, Commissioners, Counsel to the 2021, the Investors Exchange LLC year (FY) 2020.1 The calculation details Commissioners, the Secretary to the the FY 2020 competitive product (‘‘IEX’’ or the ‘‘Exchange’’) filed with the Commission, and recording secretaries Securities and Exchange Commission revenue and expenses, the competitive will attend the closed meeting. Certain products net income before tax, and the (‘‘SEC’’ or ‘‘Commission’’) the proposed staff members who have an interest in rule change as described in Items I, II, assumed Federal income tax on that net the matters also may be present. income. and III below, which Items have been In the event that the time, date, or prepared by the Exchange. The II. Notice of Commission Action location of this meeting changes, an Commission is publishing this notice to announcement of the change, along with In accordance with 39 CFR 3060.42, solicit comments on the proposed rule the new time, date, and/or place of the change from interested persons. the Commission establishes Docket No. meeting will be posted on the T2021–1 to review the calculation of the Commission’s website at https:// I. Self-Regulatory Organization’s assumed Federal income tax and www.sec.gov. Statement of the Terms of Substance of supporting documentation. The General Counsel of the the Proposed Rule Change The Commission invites comments on Commission, or his designee, has whether the Postal Service’s filing in Pursuant to the provisions of Section certified that, in his opinion, one or 3 this docket is consistent with the 19(b)(1) under the Act, and Rule 19b– more of the exemptions set forth in 5 4 policies of 39 U.S.C. 3634 and 39 CFR 4 thereunder, IEX is filing with the U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) Commission a proposed rule change to 3060.40 et seq. Comments are due no and (10) and 17 CFR 200.402(a)(3), later than March 5, 2021. The Postal modify the way it handles odd lot (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and orders by allowing them to be displayed Service’s filing can be accessed via the (a)(10), permit consideration of the scheduled matters at the closed meeting. 1 1 See Notice of the United States Postal Service 15 U.S.C. 78s(b)(1). of Submission of the Calculation of the FY 2020 The subject matter of the closed 2 17 CFR 240.19b–4. Assumed Federal Income Tax on Competitive meeting will consist of the following 3 15 U.S.C. 78s(b)(1). Products, January 14, 2021. topics: 4 17 CFR 240.19b–4.

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orders and to aggregate to form a securities exchanges that trade equities lot of 100 shares), as well as protected quotation. The Exchange has (i.e., equities exchanges), as detailed computerized trading strategies that designated this rule change as ‘‘non- below. increasingly employ odd lots.22 controversial’’ under Section 19(b)(3)(A) However, odd lots are not subject to the Background of the Act 5 and provided the same requirements as round lot orders Commission with the notice required by Currently, all odd lot orders on IEX under Regulation NMS, primarily in Rule 19b–4(f)(6) thereunder.6 are treated as non-displayed, whether that only round lots can be protected The text of the proposed rule change the User 12 entered the order into the quotations.23 Thus, the Commission’s is available at the Exchange’s website at System 13 as an odd lot, or if the order Division of Trading and Markets has www.iextrading.com, at the principal began as a displayed round 14 or provided guidance that: mixed 15 lot order, and was office of the Exchange, and at the trading centers are permitted to establish Commission’s Public Reference Room. subsequently decremented to an odd lot their own rules for handling odd-lot orders order by execution or User order II. Self-Regulatory Organization’s and the odd-lot portions of mixed-lot orders. amendment.16 When a displayed round For example, although trading centers are not Statement of the Purpose of, and or mixed lot order decrements to a non- required to handle odd-lot orders or the odd- Statutory Basis for, the Proposed Rule displayed odd lot order, the order also lot portions of mixed lot orders in accordance Change loses its execution priority as a with the requirements for automated In its filing with the Commission, the displayed order and also receives a new quotations set forth in Rule 600(b)([4]), they self-regulatory organization included timestamp resulting in the order being are free to incorporate such requirements in their rules if they wish to do so.24 statements concerning the purpose of ranked behind all resting displayed and and basis for the proposed rule change non-displayed orders on the Order Book Consistent with the above guidance, and discussed any comments it received at the same price level.17 Additionally, other equities exchanges have adopted on the proposed rule change. The text a displayed order that becomes non- rules that allow for odd lot orders to be of these statement may be examined at displayed because it decremented to an displayed, which affects the orders’ the places specified in Item IV below. odd lot will no longer be disseminated execution priority and quotation The self-regulatory organization has on IEX’s TOPS,18 DEEP,19 and Data dissemination on each exchange’s depth prepared summaries, set forth in Platform 20 data feeds (collectively, the of book feed, where applicable.25 In Sections A, B, and C below, of the most ‘‘Data Feeds’’), as applicable. addition, equities exchanges enable significant aspects of such statements. Odd lots comprise an increasingly displayed odd lot orders to aggregate at large portion of all securities the same or multiple price points that A. Self-Regulatory Organization’s transactions—in October 2020, 35.6% of equal at least one round lot to form a Statement of the Purpose of, and all trades on IEX were odd lot protected quotation under Rule Statutory Basis for, the Proposed Rule executions. Odd lots account for an 600(b)(62) of Regulation NMS.26 Change even larger percentage of trades on other Similarly, displayed odd lot orders can 1. Purpose equities exchanges—in October 2019, also be aggregated with displayed round and mixed lot orders at the same price The Exchange proposes to modify the nearly half of all trades on equities exchanges were odd lot trades, which level to form a protected quotation. way it handles odd lot orders 7 by was nearly double the number of odd lot When displayed odd lot orders allowing them to be displayed orders trades in 2016.21 IEX understands that aggregate to at least one round lot (either and to aggregate to form a protected this growth in odd lot trading is driven with other odd lot orders or with quotation. Specifically, the Exchange by the increasing prevalence of stocks displayed round and/or mixed lot proposes to amend IEX Rules 11.190(b), priced above $1,000 per share (which orders) and comprise the best bid or 11.220(a), and 11.240(c) to provide that offer for an exchange, the other equities 8 translates to more than $100,000 in a User may enter displayed as well as exchanges treat the aggregated quotation 9 notional value for the standard round non-displayed odd lot orders and to as their top of book quotation, which allow displayed odd lot orders to 12 See IEX Rule 1.160(qq). they disseminate to the appropriate aggregate to form a Protected 13 See IEX Rule 1.160(nn). Securities Information Processor (‘‘SIP’’) 10 Quotation. Additionally, the Exchange 14 A round lot order is generally any order of 100 proposes to make related changes to IEX shares or a multiple thereof (e.g., a 1,000 share 22 See supra note 21. order constitutes ten (10) round lots). See IEX Rule Rules 11.190(h) and 11.230(a)(4) to 23 Regulation NMS defines ‘‘bids’’ and ‘‘offers’’ as 11.180(a). the bid price or offer price for one or more round prevent a displayed odd lot order that 15 A mixed lot order is generally any order of lots of an NMS security, and those definitions are is not protected from resulting in a lock more than 100 shares that is not a multiple of 100 11 referenced in the definitions of ‘‘quotations,’’ or cross of IEX’s Order Book. The shares (e.g., orders for 101 shares and 299 shares are ‘‘protected bids,’’ and ‘‘protected offers.’’ See 17 Exchange also proposes to make both mixed lot orders). See IEX Rule 11.180(a). CFR 242.600(b)(8), (b)(66), and (b)(61). 16 See IEX Rule 11.190(b)(4). 24 See FAQ 7.03: ‘‘Odd-Lot Orders and Odd-Lot conforming changes to IEX Rules 17 11.190(b) and 11.240(c). This proposal See IEX Rule 11.220(a)(1)(C)(vii). Portions of Mixed-Lot Orders,’’ Division of Trading 18 See IEX Rule 11.330(a)(1) (describing how, and Markets: Responses to Frequently Asked would align IEX’s treatment of odd lot among other things, TOPS offers aggregated top of Questions Concerning Rule 611 and Rule 610 of orders with that of the other national book quotations for all displayed orders resting on Regulation NMS (April 4, 2008), available at https:// the Order Book). www.sec.gov/divisions/marketreg/nmsfaq610- 19 5 15 U.S.C. 78s(b)(3)(A). See IEX Rule 11.330(a)(3) (describing how, 11.htm#sec7. among other things, DEEP provides ‘‘aggregated 25 6 17 CFR 240.19b–4. See, e.g., The New York Stock Exchange LLC depth of book quotations for all displayed orders (‘‘NYSE’’) Rule 7.36(b) (‘‘Display’’) (describing how 7 An odd lot order is generally any order of less resting on the Order Book at each price level’’). unless otherwise instructed, ‘‘odd-lot sized Limit than 100 shares (the size of a round lot order). See 20 The IEX Data Platform, known as the ‘‘TOPS Orders . . . are considered displayed for ranking IEX Rule 11.180(a). Viewer,’’ offers both aggregated top of book and purposes’’). 8 See IEX Rule 11.190(b)(1). IEX offers three order aggregated depth of book quotations for all 26 See, e.g., The Nasdaq Stock Market LLC types that may be entered as displayed orders: limit, displayed orders resting on the Order Book. See IEX (‘‘Nasdaq’’) Rule 4756(c) (‘‘Entry and Display of reserve, and Discretionary Limit. See IEX Rule Rule 11.330(a)(2). The IEX Data Platform can be Quotes and Orders’’) (describing the process for 11.190(a)(1), (b)(2), and (b)(7). accessed at https://iextrading.com/apps/tops/. how Nasdaq aggregates displayed odd lot orders 9 See IEX Rule 11.190(b)(3). 21 See Osipovich, Alexander: ‘‘Tiny ‘Odd Lot’ with other displayed interest to calculate its best 10 See IEX Rule 1.160(bb). Trades Reach Record Share of U.S. Stock Market,’’ ranked displayed orders for dissemination as the 11 See IEX Rule 1.160(p). Wall Street Journal (October 23, 2019). exchange’s top of book quotation).

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and their own top of book feeds, as exception that an odd lot order that buy 90 shares at $10.02 and 30 shares applicable.27 cannot be aggregated with other orders at $10.01. Based upon informal feedback from to form at least a round lot, will not be As noted above and discussed in the Members,28 IEX understands that there eligible to form a protected quotation Statutory Basis section below, these is general interest in having IEX offer and to be disseminated as IEX’s top of proposed changes would align IEX’s displayed odd lot orders, so that such book quotation. The proposed changes treatment of odd lot orders with that of orders are visible on the Exchange’s also enumerate the manner in which the other equities exchanges. depth of book feeds, are eligible to IEX will aggregate odd lot orders for Specifically, other equities exchanges aggregate to form a protected quotation, purposes of forming a quotation that is allow odd lot orders to be treated as and retain their execution priority eligible to be a protected quotation. displayed or non-displayed 36 and to consistent with how displayed odd lot Specifically, IEX will aggregate all of the aggregate in the manner proposed.37 orders are treated on other equities displayed odd lot orders at the highest IEX also proposes several related rule exchanges. price to buy (or lowest price to sell) changes to prevent a displayed odd lot Proposal wherein the aggregate size of all order that is not protected from displayed buy (sell) interest in the resulting in a lock or cross of IEX’s The Exchange proposes to amend IEX System greater than or equal (less than Rules 11.190(b), 11.220(a), and 11.240(c) Order Book. or equal) to that price is one round lot First, IEX proposes to modify its non- to provide that Users may enter odd lot or greater. When the aggregate quotation orders as either displayed or non- displayed price sliding rules to prevent is the Exchange’s best ranked displayed a displayed odd lot order priced equal displayed, rank displayed odd lot orders order, IEX will disseminate this top of before non-displayed orders at the same to or more aggressively than the book quotation, rounded down to the 38 price, show displayed odd lot orders on Midpoint Price from locking or nearest round lot,31 to the appropriate IEX’s DEEP and Data Platform data feeds crossing a non-displayed incoming or SIP and the entire size of the top of book (collectively the ‘‘Depth of Book Data resting order when the orders are unable quotation to IEX’s Top of Book Data Feeds’’), and aggregate displayed odd lot to execute against each other because of Feeds.32 As displayed orders, all of orders at the same or multiple price the non-displayed order’s specific IEX’s displayed odd lot interest will also 39 points that equal at least one round lot conditions. This issue does not arise be aggregated at each price level and for purposes of transmitting the currently because non-displayed orders disseminated to IEX’s Depth of Book Exchange’s best ranked displayed orders are never priced more aggressively than Data Feeds.33 to the appropriate SIP for each security the Midpoint Price in accordance with The following example demonstrates and to IEX’s TOPS and Data Platform the ‘‘Midpoint Price Constraint’’ 40 and how, as proposed, odd lot bids 34 would data feeds (collectively the ‘‘Top of a displayed order priced equal to or be aggregated both for dissemination to Book Data Feeds’’).29 more aggressively than the Midpoint In addition, the Exchange proposes IEX’s Data Products and the SIPs, when Price would result in a change in the two related changes to prevent a applicable: NBB 41 or NBO 42 and a corresponding • 35 displayed odd lot order that is not Protected NBBO for a stock is 10.00 x 10.10. aggregated to form a protected quotation • 36 See, e.g., NYSE Rule 7.36(b)(1) (describing how from resulting in a lock or cross of IEX’s IEX’s order book has two resting unless otherwise instructed, ‘‘odd-lot sized Limit Order Book, as well as conforming displayed bids for the stock: Orders . . . are considered displayed for ranking Æ purposes’’); Cboe BZX Exchange, Inc. (‘‘Cboe BZX’’) changes to IEX Rules 11.190(b) and Order A is a displayed odd lot to buy 25 shares at $10.02. Rule 11.9(c)(2); Nasdaq Rule 4703(b); and MIAX 11.240(c), each as described below. Æ PEARL, LLC (‘‘MIAX Pearl’’) Rule 2611(a); and Accordingly, with respect to Order B is a displayed odd lot to MEMX LLC (‘‘MEMX’’) Rules 11.2(a) and 11.6(q)(2). buy 65 shares at $10.02. See also Securities Exchange Act Release No. 87221 displaying odd lot orders, IEX proposes • to amend all the rules describing odd lot Orders A and B do not aggregate to (October 3, 2019), 84 FR 54195 (October 9, 2019) a protected quotation and will not be (SR–LTSE–2019–02) (detailing how the Long Term orders as non-displayed to reflect that Stock Exchange, Inc. (‘‘LTSE’’) removed all odd lot orders may be either displayed disseminated to the Top of Book Data references to odd lot orders being non-displayed, or non-displayed, based upon User Feeds and the SIPs. including removing language about how round lots • IEX will disseminate to its Depth of decrementing to an odd lot become non-displayed instruction per order. Consistent with and lose their priority, and clarifying that displayed this change, a displayed round lot order Book Data Feeds that it has interest to buy 90 shares at $10.02. odd lots can aggregate to form a protected that decrements to an odd lot will retain • quotation). its displayed status and execution Order C arrives: a displayed odd lot 37 See, e.g., Nasdaq Rule 4756(c); NYSE Rule priority, and IEX therefore proposes to order to buy 30 shares at $10.01. 7.36(b)(3); Cboe BZX Rule 21.6(d); MIAX Pearl Rule • 2616(b); MEMX Rule 11.9(b)(2); and LTSE Rule remove any references to how Orders A, B, and C will aggregate to form a protected quotation at 10.01, 11.410. decrementing a displayed round lot to 38 which is disseminated to the SIP (as one See IEX Rule 1.160(t). an odd lot causes the order to lose its 39 The primary situation in which this would displayed status and execution priority. round lot) and Top of Book Data Feeds arise is if the non-displayed order is a Minimum Thus, displayed odd lot orders would as interest to buy 120 shares at $10.01. Quantity order with a User instruction that it • cannot match with an order the size of the have priority over any non-displayed IEX will disseminate to its Depth of Book Data Feeds that it has interest to displayed odd lot. See IEX Rule 11.190(b)(11). orders booked at the same price.30 Significantly, only non-displayed orders can have As proposed, IEX will display odd lot specific conditions such as a Minimum Quantity orders in the same manner it displays 31 The SIPS only accept quotations in round lots. that could prevent a match. Id. It is also possible 32 round or mixed lot orders, with the See IEX Rule 11.330(a)(1) and (2). that a non-displayed order would be subject to 33 See IEX Rule 11.330(a)(2) and (3). another specific condition that would prevent 34 The example focuses on the aggregation of matching with a displayed odd lot order in such 27 See, e.g., Nasdaq Rule 4756(c). displayed odd lot orders to buy, but the same circumstances, such as a Corporate Discretionary 28 See IEX Rule 1.160(s). process applies to aggregating displayed odd lot Peg (‘‘C-Peg’’) order that cannot match because of 29 These proposed rule changes are consistent orders to sell, with the exception that the displayed the pricing conditions applicable to C-Peg orders. with how other equities exchanges handle odd lot orders to sell will aggregate at the lowest See IEX Rule 11.190(b)(16). displayed odd lot orders. See supra notes 25 and price wherein the aggregate size of all displayed 40 See IEX Rule 11.190(h)(2). 26. interest to sell is one round lot or greater. 41 See IEX Rule 1.160(u). 30 See IEX Rule 11.220(a)(1)(B). 35 See IEX Rule 1.160(cc). 42 See IEX Rule 1.160(u).

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change to the Midpoint Price. However, And several other exchanges would national securities exchange becomes with the introduction of displayed, but execute a non-displayed order only at a eligible to be re-priced to a more unprotected, odd lot orders, there is the less aggressive price than a contra-side aggressive price as a result of a change potential that a displayed odd lot order unprotected displayed odd lot order to in the NBBO, it will trade with an would post on the Order Book at a price prevent the displayed odd lot order unprotected displayed odd lot on the equal to or more aggressive than the crossing each exchange’s order book.48 IEX Order Book that it would lock or Midpoint Price and would lock or This proposed change to the non- cross as it re-prices. In this cross 43 a contra-side resting non- displayed price sliding rules applies to circumstance, the orders will execute displayed order (or be locked or crossed all non-displayed orders except for according to the priority of each order, by an incoming non-displayed order) if Discretionary Peg (‘‘D-Peg’’) and C-Peg and the remover of liquidity will be the the non-displayed order’s specific orders, which also can have specific order with the newest timestamp. conditions prevent it from matching conditions that prevent them from Under existing rules, any displayed with the displayed odd lot order.44 matching an aggressively priced contra- orders that would be locked or crossed In order to address this possible side displayed odd lot order with which by a displayed order subject to re- scenario, IEX proposes to amend the they would otherwise match. However, pricing would either change the non-displayed price-sliding rules so that because D-Peg and C-Peg orders book at Protected NBBO 51 (if the displayed the price of a non-displayed order that, a price one (1) MPV less aggressive than order is the best bid or best offer), or re- because of its specific conditions, is not the NBBO,49 they are different from price such that the displayed order does executable against a contra-side other non-displayed orders and cannot not lock or cross the Protected NBBO.52 displayed odd lot order that is priced lock or cross a displayed odd lot order With the introduction of unprotected equal to or more aggressively than the priced equal to or more aggressive than displayed odd lot orders, it is now Midpoint Price is adjusted to one (1) the Midpoint Price.50 However, both D- possible for a displayed order subject to minimum price variant (‘‘MPV’’) 45 less Peg and C-Peg orders have a display price sliding to re-price to a aggressive than the price of the contra- ‘‘discretionary price’’ that allows them price where it locks or crosses a contra- side displayed odd lot order. to exercise discretion and execute up to side unprotected displayed odd lot Specifically, IEX proposes to modify the less aggressive of the limit price (if order. Because IEX rules provide that it IEX Rule 11.190(h)(2), and add new any) or the Midpoint Price. Therefore, will never display a locked market, nor subsection (A), to specify that in such a there is a limited circumstance in which can a locked or crossed market exist circumstance, the non-displayed order a D-Peg or C-Peg could execute at a within the System,53 in such a scenario will book at a price one (1) MPV less price that locks or crosses a displayed IEX must either again re-price one or aggressive than the price of the contra- odd lot order priced at or more both orders, or allow them to execute side displayed odd lot order. aggressively than the Midpoint Price. against each other. IEX believes that These proposed changes to the non- Accordingly, IEX also proposes to allowing these two orders to match displayed price sliding rules are thus amend the non-displayed price sliding when they become executable after re- designed to address the potential that an rules to state that in this scenario, the pricing is consistent with investor unprotected displayed odd lot order D-Peg or C-Peg order would not be able expectations that marketable orders will will result in the IEX Order Book to exercise discretion up to the match and could result in price becoming locked or crossed, by sliding Midpoint Price, and instead the improvement when the trade is at a orders in a reasonably expected manner discretionary price for a D-Peg or C-Peg better price than the NBBO. By contrast, based on current IEX rules, and order will be either the less aggressive IEX believes that subjecting displayed consistent with the rules of several other of the order’s limit price (if any) or one orders to additional price sliding to equities exchanges. For example, (1) MPV less aggressive than the price avoid locking or crossing a small odd lot Nasdaq re-prices non-displayed orders of the contra-side unprotected displayed order would not benefit investors, to a price one (1) MPV less aggressive odd lot order. This manner of limiting would disadvantage the re-pricing than the price of a resting contra-side the amount of discretion a D-Peg or C- orders (because they receive a new displayed odd lot order if the non- Peg can exercise to prevent locking or timestamp and corresponding reduced displayed order would lock or cross the crossing a contra-side displayed odd lot priority), and would create unnecessary displayed odd lot order because the order is also consistent with other complexity. IEX’s proposal is consistent with the non-displayed order’s minimum aspects of the proposed rule change to manner in which NYSE matches orders quantity condition prevents the two avoid locking or crossing an orders from matching.46 Similarly, to unprotected displayed odd lot order. 51 See IEX Rule 11.240(c)(1). avoid a lock or cross on its order book, Second, the Exchange proposes to revise IEX Rule 11.230(a)(4) to provide 52 Under existing rules, a displayed order (all of NYSE reprices orders with a minimum which are currently protected quotations) that on trade size (‘‘MTS’’) modifier to a less that when a displayed order that was entry would lock or cross another order on the IEX aggressive price than the price of a previously subject to price sliding to Order Book will be executed against the resting resting contra-side displayed odd lot avoid locking or crossing a contra-side order. Further, a displayed order will be subject to protected quotation of an another displayed price sliding to avoid locking or crossing order with which it would have a protected quotation of another national securities matched but for the MTS modifier.47 exchange and be subsequently re-priced to a more 48 These exchanges would execute the order at a aggressive price if the NBBO changes and it would price 1⁄2 MPV less aggressive than the contra-side no longer lock or cross a protected quotation of 43 A non-displayed order would cross the odd lot displayed odd lot. See Cboe BZX Rules another national securities exchange. However, a order if the non-displayed order is priced at the 11.13(a)(4)(C) and (D); MEMX Rules 11.10(a)(4)(C) displayed order will not be able to re-price to a Midpoint and would lock if priced at the same price and (D); and MIAX Pearl Rules 2617(a)(4)(C) and more aggressive price if the NBBO has not changed, as the odd lot order. (D). In the same situation, IEX is proposing to re- even if the contra-side protected quotation is now 44 This scenario would not arise if the contra-side price the non-displayed order to a price one (1) an IEX protected quotation. This is because resting order is a displayed order because displayed orders MPV less aggressive than the contra-side displayed displayed orders do not become active orders that cannot include a minimum quantity and would odd lot order, which IEX believes is a minor take other resting orders but wait for potential execute against the odd lot order. distinction from the Cboe BZX, MEMX, and MIAX execution with either an incoming order or a non- 45 See IEX Rule 11.210. 1⁄2 MPV approach. displayed order that has become active through the 46 See Nasdaq Rule 4703(e). 49 See IEX Rule 1.160(u). recheck process. 47 See NYSE Rule 7.31(i)(3)(C)(i). 50 See IEX Rule 11.190(b)(10) and (16). 53 See IEX Rule 11.230(a)(4)(C).

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that become marketable against each that all odd lot orders are non-displayed, and booked at a price equal to or more aggressive other as a result of one or both orders that a displayed order that decrements to less than the Midpoint Price will affect the resting re-pricing.54 And this proposal is also than a round lot is treated by the System as or discretionary price of non-displayed analogous to how several exchanges a non-displayed order, and add language resting orders as set forth in new subsections specifying that odd lot orders marked for (A) and (B). with post-only order types allow such display are only eligible to be protected D Add subsection (A) specifying that a orders to take liquidity and match under quotations if aggregated to form at least one non-displayed order (other than a D-Peg or C- limited circumstances when re- round lot. Peg) that would otherwise be executable pricing.55 • Modify IEX Rule 11.190(b)(5) (‘‘Mixed against a contra-side displayed odd lot order Similarly, IEX’s proposal to have the Lot Order’’) to remove the language providing priced equal to or more aggressively than the orders execute according to the priority that any displayed mixed lot order that Midpoint Price, but for the non-displayed of each order is consistent with IEX’s decrements to less than a round lot is treated order’s specific conditions, will be ranked 56 by the System as a non-displayed order. and displayed by the System at one (1) MPV order priority rule, other exchange’s • rules,57 and the manner in which the Modify Rule IEX 11.190(b)(7) less aggressive than the price of the contra- (‘‘Discretionary Limit Order’’) to remove the side displayed odd lot order. System invites resting orders to recheck text in subsection (E)(vii) describing how D- D Add subsection (B) specifying that a D- the IEX Order Book.58 And the proposal Limit orders can only be displayed if they are Peg or C-Peg order that would otherwise be to have the newest order be the remover at least one round lot, and that if a D-Limit executable against a contra-side displayed of liquidity is consistent with the order is decremented to less than a round lot odd lot order priced equal to or more existing practice that the newer arriving it will be treated as non-displayed and given aggressively than the Midpoint Price, but for order takes any liquidity it finds on an a new timestamp. the D-Peg or C-Peg order’s specific • exchange’s order book.59 Modify IEX Rule 11.220 (‘‘Priority of conditions, will be booked by the System in Accordingly, IEX proposes to amend Orders’’) to remove subsection (a)(1)(C)(vii), the manner set forth in Rule 11.190(b)(10) or Rule 11.190(b)(16), respectively, but the IEX rules as described below: which states that a displayed order that decrements to less than a round lot receives discretionary price of the order will be • Modify IEX Rule 11.190(b)(1) a new timestamp and is considered a non- limited to the less aggressive of the limit (‘‘Displayed Order’’) to remove the language displayed order. And renumber subsection price, if any, or one (1) MPV less aggressive in subsection (H) providing that displayed (a)(1)(C)(viii) to (a)(1)(C)(vii), because of the than the price of the contra-side displayed orders must be at least one round lot, and removal of the current subsection odd lot order. that a round lot that decrements to an odd (a)(1)(C)(vii). Æ Modify IEX Rule 11.190(b)(10) (‘‘D-Peg’’) lot will be treated as non-displayed and will • Modify IEX Rule 11.220(a)(3) to make a conforming change specifying that receive a new timestamp, and add new text (‘‘Decrementing Order Quantity and the order’s discretionary price may be specifying that displayed orders can be odd Priority’’) to remove the two references to changed as set forth in new IEX Rule lots, mixed lots, or round lots. how a displayed round lot order becomes a 11.190(h)(2)(B). • Modify IEX Rule 11.190(b)(2) (‘‘Reserve non-displayed order if the order is Æ Modify IEX Rule 11.190(b)(16) (‘‘C-Peg’’) Order’’) to remove the language in subsection decremented to less than a round lot, as set to make a conforming change specifying that (2)(H) providing that reserve orders must be forth in the to-be-removed Rule the order’s discretionary price may be at least one round lot, and to remove the 11.220(a)(1)(C)(vii). changed as set forth in new IEX Rule language stating that if the displayed portion • Modify IEX Rule 11.240(c) 11.190(h)(2)(B). • of the reserve order decrements to less than (‘‘Dissemination of Quotation Information’’) Amend IEX Rule 11.230 to provide that a round lot it loses its displayed status and by adding new subsection (2) providing that when a displayed order that was previously receives a new timestamp. And add new text pursuant to Rule 602 of Reg NMS, the subject to price sliding to avoid locking or specifying that if a displayed reserve order is Exchange will transmit for display to the crossing a contra-side protected quotation of decremented to less than one round lot, the appropriate SIP for each security the an another national securities exchange order will continue to be treated as a aggregate best ranked orders, as detailed in becomes eligible to be re-priced to a more displayed order and will retain its priority. the following subsections: aggressive price as a result of a change in the • Modify IEX Rule 11.190(b)(4) (‘‘Odd Lot Æ Add new subsection (A), which specifies NBBO it will trade with an unprotected Order’’) to remove the language providing that the best priced buy order will be the displayed odd lot on the IEX Order Book that highest price to buy wherein the aggregate it would lock or cross as it re-prices as 54 See NYSE Rules 7.37(b)(8) and (9) (Resting size of all displayed buy interest greater than follows: Æ orders that are repriced and become marketable or equal to that price is one round lot or Add subsection (E) to IEX Rule against contra-side orders on order book will trade higher. 11.230(a)(4) which specifies that in the case consistent with their ranking, and resting orders on Æ of a displayed order previously subject to both sides of market that reprice and become Add new subsection (B), which specifies marketable against one another will trade consistent that the aggregated best priced buy order in price sliding, upon a change to the Order with their ranking). subsection (A) will be rounded down to the Book or the NBBO that would result in the 55 See Cboe BZX Rule 11.9(g)(2)(D) (a displayed nearest round lot. displayed order re-pricing to a more post only order subject to display-price sliding that Æ Add new subsection (C), which specifies aggressive price that would lock or cross a can remove displayed liquidity from the exchange’s that the best priced sell order will be the resting unprotected displayed odd lot order, order book will execute if the execution value lowest price to sell wherein the aggregate size the re-pricing order and the displayed odd lot (including fees/rebates) equals or exceeds the of all displayed sell interest less than or order will execute according to the priority execution value of the post only order providing of each order, and the remover of liquidity liquidity); see also Cboe BZX Rule 11.9(c)(6) equal to that price is one round lot or higher. Æ Add new (D), which specifies that the will be the order with the newest timestamp. (describing the circumstances in which a post only • order becomes the remover of liquidity). MEMX, aggregated best priced sell order in Make two conforming changes to IEX MIAX Pearl, and Nasdaq all offer similar subsection (C) will be rounded down to the Rule 11.240(c)(1): Æ functionality in which a post only order subject to nearest round lot. Move the phrase ‘‘pursuant to IEX Rule price sliding can become the remover of liquidity • Amend IEX Rule 11.190 to prevent a 11.220’’ to be clear it applies to both best- when the execution results in at least as much price displayed odd lot order priced equal to or ranked orders to buy and best ranked orders improvement as the if the post only order remained more aggressively than the Midpoint Price to sell a liquidity provider. See MEMX Rule Æ from locking or crossing a non-displayed Remove the extraneous sentence about 11.6(j)(1)(A)(iv); MIAX Pearl Rule 2614(g)(1)(D); the Exchange maintaining connectivity to the Nasdaq Rule 4702(b)(4)(A). incoming or resting order when the orders SIPs, which is already addressed in detail in 56 See IEX Rule 11.220. are unable to execute against each other IEX Rule 11.510. 57 See supra note 54. because of the non-displayed order’s specific 58 See IEX Rule 11.230(a)(4)(D). conditions as follows: Æ Implementation 59 See, e.g., NYSE Rule 7.31(d)(3)(B) (when two Modify IEX Rule 11.190(h)(2) (‘‘Non- midpoint liquidity orders match, the order with the Displayed Price Sliding’’) to add language This proposed rule change will be newer timestamp is the liquidity-removing order). providing that a displayed odd lot order immediately effective upon filing, but

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subject to the thirty (30) day operative the Protected NBBO and enable odd lots possible, situation in which an delay. The Exchange anticipates priced more aggressively then the unprotected odd lot order priced equal implementing the rule change within Protected NBBO to narrow the Protected to or more aggressively than the ninety (90) days of the effective date and NBBO (if they can be aggregated to at Midpoint Price would result in a cross will provide at least ten (10) days’ least one round lot), thereby of IEX’s Order Book because the notice to Members and market contributing to the public price displayed odd lot is unable to match participants of the implementation discovery process and offering potential with a non-displayed order priced at or timeline. price improvement opportunities to more aggressively than the Midpoint market participants that might Price because of the non-displayed 2. Statutory Basis otherwise be unaware of such better order’s specific conditions. These The Exchange believes that the priced interest. proposed changes are also designed to proposed rule change is consistent with Furthermore, the Exchange believes protect against a D-Peg or C-Peg order Section 6(b) of the Act,60 in general, and that allowing odd lots to aggregate to exercising discretion to the point that it furthers the objectives of Section form a quotation and be eligible to be executes at a price that locks or crosses 6(b)(5),61 in particular, in that it is the Exchange’s Protected Quotation is the price of a contra-side displayed odd designed to prevent fraudulent and consistent with the Act because such lot. The Exchange notes that these manipulative acts and practices, to functionality is designed to remove changes are designed to remove promote just and equitable principles of impediments to and perfect the impediments to and perfect the trade, to foster cooperation and mechanism of a free and open market mechanism of a free and open market coordination with persons engaged in and a national market system by and a national market system by facilitating transactions in securities, providing market participants greater protecting market participants from and to remove impediments to and visibility into liquidity available on the having their non-displayed orders be perfect the mechanism of a free and Exchange via the SIPs and IEX’s Data inadvertently crossed by an unprotected open market and a national market Feeds. displayed odd lot. This proposed system, and, in general, to protect In addition, since this proposed rule change is also consistent with investors and the public interest. change would make IEX’s treatment of Regulation NMS’s goals of avoiding Specifically, the Exchange believes that odd lot orders consistent with that of crossed markets. providing for displayed odd lot orders is the other equities exchanges,62 IEX Similarly, the Exchange believes that consistent with the protection of believes that it will promote just and the proposed change to IEX’s execution investors and the public interest equitable principles of trade and foster rules to allow displayed orders because it is designed to incentivize the cooperation and coordination with previously subject to price sliding to entry of additional displayed limit persons engaged in facilitating securities match with liquidity provided by a orders on IEX by providing the transactions because market participants contra-side unprotected displayed odd opportunity for odd lot orders to receive will no longer have to potentially adjust lot order that the re-pricing order would displayed order execution priority and their order routing strategies or trading otherwise lock or cross are consistent visibility, thereby enhancing price algorithms to reflect that odd lots are with the Act because the proposed rule discovery and the overall liquidity never displayed on IEX, and will be change is designed to protect investors profile on the Exchange to the benefit of readily able to accommodate the and the public interest by facilitating all market participants. dissemination of displayed odd lots on the execution of marketable orders that The Exchange further believes that IEX’s Depth of Book Data Feeds. would otherwise be blocked from treating displayed odd lot orders in the Moreover, IEX does not believe that executing by the price sliding rules in same manner as it treats displayed these proposed changes raise any new order to prevent the market from round or mixed lot orders (with the or novel issues not already considered becoming locked or crossed, while exception that non-aggregated displayed by the Commission since other equities increasing price improvement odd lots cannot form a Protected exchanges have substantially similar opportunities (by allowing the orders to Quotation) is consistent with the Act rules. execute at prices more aggressive than because such treatment is designed to Furthermore, as discussed in the the Protected NBBO). Furthermore, as remove impediments to and perfect the Purpose section, IEX believes that the discussed in the Purpose section, this mechanism of a free and open market proposed revisions to the non-displayed proposed change is consistent with and national market system by price sliding rules and the execution investor expectations and will minimize standardizing the treatment of all rules for displayed orders subject to the unnecessary complexity that would displayed liquidity on the Exchange, price sliding are consistent with the result from requiring an unprotected and as discussed in the Purpose section, protection of investors and the public displayed odd lot order priced more conforming IEX’s treatment of odd lots interest because they are designed to aggressively than the Protected NBBO to with those of the other equities avoid an unprotected odd lot order force a marketable contra-side displayed exchanges. resulting in a locked or crossed market order to continually re-price to avoid Additionally, the Exchange believes in a manner that would be reasonably locking or crossing the contra-side that making displayed odd lot orders expected based on current IEX rules and displayed odd lot order. eligible to aggregate to form Protected design, consistent with the rules of Moreover, as noted in the Purpose Quotations is consistent with the several other equities exchanges, and section, other exchanges have adopted protection of investors and the public designed to avoid unnecessary similar mechanisms to prevent interest because such functionality is complexity. displayed odd lot orders from resulting designed to increase displayed liquidity Specifically, the Exchange believes in a locked or crossed market (both for on IEX. Specifically, the proposed rule that the proposed changes to IEX’s non- non-displayed and displayed orders). change will enable odd lots priced at the displayed price sliding rules are Therefore, the Exchange believes that Protected NBBO to increase the size of consistent with the Act because such these aspects of the proposed rule changes would prevent the unlikely, but change also do not raise any material 60 15 U.S.C. 78f(b). new or novel issues not previously 61 15 U.S.C. 78f(b)(5). 62 See supra notes 25 and 26. considered by the Commission.

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Additionally, IEX believes that the reasonably predictable ways consistent displayed limit orders on IEX by proposed conforming changes to IEX with the expectations of market providing the opportunity for odd lot Rules 11.190(b)(10) and (16) and participants and competing equities orders to receive displayed order 11.240(c)(1) further the purposes of the exchanges that may route odd lot orders execution priority and visibility, thereby Act because they provide greater clarity to the Exchange. To the extent there are enhancing price discovery and the and consistency to the IEX Rule Book minor differences in IEX’s proposed overall liquidity profile on the Exchange thereby reducing the potential for approach to address the potential that to the benefit of all market participants, confusion of any market participants. an unprotected displayed odd lot order as discussed in the Purpose, Statutory Specifically, the proposed conforming could result in a locked or crossed Basis, and Burden on Competition changes to IEX Rules 11.190(b)(10) and market, the differences are not based on sections. Further, the Exchange believes (16) will prevent any confusion to competitive considerations but rather that the proposed rule change is market participants about how D-Peg simply to provide for reasonably consistent with the protection of and C-Peg orders’ discretionary prices predictable outcomes in a manner investors and the public interest would be impacted by the presence of consistent with IEX’s system design. because it would standardize the a contra-side non-displayed order with The Exchange also does not believe treatment of all displayed liquidity on specific conditions that prevented the that the proposed rule change will the Exchange, and as discussed in the otherwise marketable orders from impose any burden on intramarket Purpose and Statutory Basis sections, matching. Similarly, the proposed competition because it will apply to all substantially conform IEX’s treatment of conforming change to IEX Rule Members in the same manner. All odd lots with those of the other equities 11.240(c)(1) will make clear to market Members are eligible to enter displayed participants that the same priority rules exchanges in a manner consistent with odd lot orders and all Members may the existing IEX rules and investor apply to determining both the best- continue to use non-displayed odd lot expectations. ranked order to buy and the best-ranked orders. Moreover, the proposal would order to sell, and to reduce any possible provide potential benefits to all IEX also does not believe that the confusion that could arise from the Members to the extent that there is more proposed changes raise any new or mention of how IEX connects to the liquidity available on IEX as a result of novel material issues that have not SIPs, when all connectivity is addressed the ability to enter displayed odd lot already been considered by the in great detail in IEX Rule 11.510. orders. As discussed above, the proposal Commission because it would substantially conform IEX’s treatment of B. Self-Regulatory Organization’s is intended to incentivize the entry of Statement on Burden on Competition additional odd lot orders, which would odd lot orders to the manner in which provide additional available liquidity to such orders are treated by other equities The Exchange does not believe that all Members. exchanges, as discussed in the Purpose the proposed rule change will impose and Statutory Basis sections. any burden on competition that is not C. Self-Regulatory Organization’s Specifically, the manner in which IEX necessary or appropriate in furtherance Statement on Comments on the proposes to allow odd lot orders to be of the purposes of the Act. Proposed Rule Change Received From displayed and aggregated to form a The Exchange does not believe that Members, Participants, or Others protected quote is substantially similar the proposed rule change will impose Written comments were neither to the functionality of the other equities any burden on intermarket competition solicited nor received. exchanges.66 Similarly, IEX’s proposed that is not necessary or appropriate in approach to prevent a displayed odd lot furtherance of the purposes of the Act. III. Date of Effectiveness of the order from locking or crossing a non- To the contrary, the proposal is Proposed Rule Change and Timing for displayed contra-side order that has a designed to enhance IEX’s Commission Action specific condition that prevent the competitiveness with other markets by The Exchange has designated this rule adopting rules providing for displayed orders from matching is consistent with filing as non-controversial under Nasdaq and NYSE rules,67 and also odd lots that are comparable to those in 63 Section 19(b)(3)(A) of the Act and similar to the rules of the Cboe BZX, place at other equities exchanges. As 64 Rule 19b–4(f)(6) thereunder. Because 68 discussed in the Purpose section, the MEMX, and MIAX Pearl exchanges. the proposed rule change does not: (i) Finally, the manner in which IEX will proposal is designed to incentivize the Significantly affect the protection of entry of additional displayed limit match one or more displayed odd lot investors or the public interest; (ii) orders that become executable against a orders on IEX by providing the impose any significant burden on opportunity for odd lot orders to receive contra-side displayed order as a result of competition; and (iii) become operative a re-pricing triggered by market changes displayed order execution priority and for 30 days from the date on which it is consistent with the approaches taken visibility, thereby enhancing price was filed, or such shorter time as the by several other exchanges that match discovery, and increasing the overall Commission may designate, it has resting orders that re-price to a point of displayed liquidity profile on the become effective pursuant to Section marketability.69 Accordingly, the Exchange to the benefit of all market 19(b)(3)(A) of the Act and Rule 19b– Exchange does not believe that the participants. 4(f)(6) thereunder. IEX’s proposed approach to prevent The Exchange believes that the proposed approaches raise any new or the potential occurrence of an proposed rule change meets the criteria novel issues not previously considered unprotected displayed odd lot order of subparagraph (f)(6) of Rule 19b–4 65 by the Commission. locking or crossing IEX’s Order Book is because it is consistent with the Accordingly, the Exchange has based upon the approaches of other protection of investors and the public designated this rule filing as non- equities exchanges that are designed to interest because it is designed to controversial under Section 19(b)(3)(A) mitigate the same issue in a manner incentivize the entry of additional consistent with each exchange’s 66 See supra notes 25 and 26. particular technical design and 63 15 U.S.C. 78s(b)(3)(A). 67 See supra notes 46 and 47. functionality. IEX’s proposed rule 64 17 CFR 240.19b–4(f)(6). 68 See supra note 48. changes are designed to function in 65 17 CFR 240.19b–4(f)(6). 69 See supra notes 54 and 55.

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of the Act 70 and paragraph (f)(6) of Rule 10:00 a.m. and 3:00 p.m. Copies of the Commission for the applicable fiscal 19b–4 thereunder.71 At any time within filing also will be available for year.5 60 days of the filing of the proposed rule inspection and copying at the principal The Commission is required to change, the Commission summarily may offices of the Exchange. All comments publish notice of the new fee rates temporarily suspend such rule change if received will be posted without change. under Section 31 not later than 30 days it appears to the Commission that such Persons submitting comments are after the date on which an Act making action is necessary or appropriate in the cautioned that we do not redact or edit a regular appropriation for the public interest, for the protection of personal identifying information from applicable fiscal year is enacted.6 On investors, or otherwise in furtherance of comment submissions. You should December 27, 2020, the President signed the purposes of the Act. If the submit only information that you wish into law the Consolidated Commission takes such action, the to make available publicly. All Appropriations Act, 2021, which Commission shall institute proceedings submissions should refer to File includes total appropriations of under Section 19(b)(2)(B) 72 of the Act to Number SR–IEX–2021–01, and should $1,926,162,000 to the SEC for fiscal year determine whether the proposed rule be submitted on or before February 12, 2021. change should be approved or 2021. II. Fiscal Year 2021 Annual Adjustment disapproved. For the Commission, by the Division of to the Fee Rate IV. Solicitation of Comments Trading and Markets, pursuant to delegated authority.73 The new fee rate is determined by (1) subtracting the sum of fees estimated to Interested persons are invited to J. Matthew DeLesDernier, submit written data, views, and be collected prior to the effective date of Assistant Secretary. arguments concerning the foregoing, the new fee rate 7 and estimated including whether the proposed rule [FR Doc. 2021–01402 Filed 1–21–21; 8:45 am] assessments on security futures change is consistent with the Act. BILLING CODE 8011–01–P transactions to be collected under Comments may be submitted by any of Section 31(d) of the Exchange Act for all the following methods: of fiscal year 2021 8 from an amount SECURITIES AND EXCHANGE equal to the regular appropriation to the Electronic Comments COMMISSION Commission for fiscal year 2021, and (2) • Use the Commission’s internet [Release No. 34–90932/January 15, 2021] dividing by the estimated aggregate comment form (http://www.sec.gov/ dollar amount of covered sales for the rules/sro.shtml); or remainder of the fiscal year following • Order Making Fiscal Year 2021 Annual Send an email to rule-comments@ Adjustments to Transaction Fee Rates the effective date of the new fee rate.9 sec.gov. Please include File Number SR– As noted above, the Consolidated IEX–2021–01 on the subject line. I. Background Appropriations Act, 2021, includes total Paper Comments Section 31 of the Securities Exchange appropriations of $1,926,162,000 to the Commission for fiscal year 2021.10 The • Send paper comments in triplicate Act of 1934 (‘‘Exchange Act’’) requires each national securities exchange and to Secretary, Securities and Exchange 5 15 U.S.C. 78ee(j)(1) (the Commission must national securities association to pay adjust the rates under Sections 31(b) and (c) to a Commission, 100 F Street NE, 1 Washington, DC 20549–1090. transaction fees to the Commission. ‘‘uniform adjusted rate that, when applied to the Specifically, Section 31(b) requires each baseline estimate of the aggregate dollar amount of All submissions should refer to File national securities exchange to pay to sales for such fiscal year, is reasonably likely to Number SR–IEX–2021–01. This file produce aggregate fee collections under [Section 31] the Commission fees based on the number should be included on the (including assessments collected under [Section aggregate dollar amount of sales of subject line if email is used. To help the 31(d)]) that are equal to the regular appropriation certain securities (‘‘covered sales’’) to the Commission by Congress for such fiscal Commission process and review your transacted on the exchange.2 Section year.’’). comments more efficiently, please use 6 31(c) requires each national securities 15 U.S.C. 78ee(g). only one method. The Commission will 7 The sum of fees to be collected prior to the association to pay to the Commission post all comments on the Commission’s effective date of the new fee rate is determined by fees based on the aggregate dollar internet website (http://www.sec.gov/ applying the current fee rate to the dollar amount amount of covered sales transacted by or of covered sales prior to the effective date of the rules/sro.shtml). Copies of the through any member of the association new fee rate. The exchanges and FINRA have submission, all subsequent provided data on the dollar amount of covered sales other than on an exchange.3 amendments, all written statements through November, 2020. To calculate the dollar Section 31 of the Exchange Act with respect to the proposed rule amount of covered sales from December, 2020 to the requires the Commission to annually effective date of the new fee rate, the Commission change that are filed with the adjust the fee rates applicable under is using the same methodology it used in fiscal year Commission, and all written 2020. This methodology is described in Appendix Sections 31(b) and (c) to a uniform A of this order. communications relating to the 4 adjusted rate. Specifically, the 8 proposed rule change between the OneChicago, LLC, the only reporting entity for Commission must adjust the fee rates to Commission and any person, other than single stock futures, ceased operations in a uniform adjusted rate that is September, 2020; its last R–31 report was filed in those that may be withheld from the reasonably likely to produce aggregate October, 2020. Accordingly, the forecast for the public in accordance with the assessments for all of fiscal year 2021 for single fee collections (including assessments provisions of 5 U.S.C. 552, will be stock futures is the reported assessments on single on security futures transactions) equal available for website viewing and stock futures from September, 2020 by OneChicago, to the regular appropriation to the LLC. printing in the Commission’s Public 9 To estimate the aggregate dollar amount of Reference Room, 100 F Street NE, covered sales for the remainder of fiscal year 2021 73 Washington, DC 20549 on official 17 CFR 200.30–3(a)(12). following the effective date of the new fee rate, the 1 15 U.S.C. 78ee. business days between the hours of Commission is using the same methodology it used 2 15 U.S.C. 78ee(b). previously. This methodology is described in 3 15 U.S.C. 78ee(c). Appendix A of this order. 70 15 U.S.C. 78s(b)(3)(A). 4 In some circumstances, the SEC also must make 10 The President signed into law the 71 17 CFR 240.19b–4. a mid-year adjustment to the fee rates applicable ‘‘Consolidated Appropriations Act, 2021’’ on 72 15 U.S.C. 78s(b)(2)(B). under Sections 31(b) and (c). December 27, 2020. This legislation included an

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Commission estimates that it will By the Commission. required to be forecast for the remainder of collect $1,514,646,590 in fees for the Jill M. Peterson, the fiscal year. The trailing moving average used in the forecast model is presented in period prior to the effective date of the Assistant Secretary. new fee rate and $494 in assessments on column E of Table A. Appendix A To capture the recent trends in the round turn transactions in security monthly changes in the moving averages, futures products during all of fiscal year This appendix provides the methodology calculate the 1-month and 2-month lags of 2021. Using the methodology described for determining the annual adjustment to the the trailing moving average shown in column in Appendix A, the Commission fee rates applicable under Sections 31(b) and E in Table A. These amounts are shown in estimates that the aggregate dollar (c) of the Exchange Act for fiscal year 2021. columns F and G, respectively, of Table A. Section 31 of the Exchange Act requires the amount of covered sales for the Next, model the monthly trailing moving fee rates to be adjusted so that it is reasonably average of ADS as function of a constant term remainder of fiscal year 2021 to be likely that the Commission will collect $81,081,356,203,186. and the two lagged trailing moving averages aggregate fees equal to its regular using the ordinary least squares technique. The uniform adjusted rate is appropriation for fiscal year 2021. Use the estimated model to forecast the computed by dividing the residual fees To make the adjustment, the Commission trailing moving average of ADS of the first to be collected of $411,514,917 by the must project the aggregate dollar amount of month after the last available monthly data. estimated aggregate dollar amount of covered sales of securities on the securities Estimate the trailing moving average of the exchanges and certain over-the-counter second month using the forecasted value of covered sales for the remainder of fiscal (‘‘OTC’’) markets over the course of the year. year 2021 of $81,081,356,203,186; this the first month and the actual value of the The fee rate equals the ratio of the month before that. Similarly, estimate the results in a uniform adjusted rate for Commission’s regular appropriation for fiscal 11 trailing moving average of the third month fiscal year 2021 of $5.10 per million. year 2021 (less the sum of fees to be collected using the forecasted values of the two during fiscal year 2021 prior to the effective previous months. Continue in this fashion III. Effective Date of the Uniform date of the new fee rate and aggregate Adjusted Rate until the end of the fiscal year. assessments on security futures transactions The estimate of the trailing moving average Under Section 31(j)(4)(A) of the during all of fiscal year 2021) to the ADS for the last applicable month in the estimated aggregate dollar amount of covered Exchange Act, the fiscal year 2021 fiscal year is a prediction of the moving sales for the remainder of the fiscal year average for those months that need to be annual adjustments to the fee rates following the effective date of the new fee applicable under Sections 31(b) and (c) predicted. This estimate is used as the rate. predicted value of ADS for each month in the of the Exchange Act shall take effect on For 2021, the Commission has estimated forecast period; to obtain the forecast total the later of October 1, 2020, or 60 days the aggregate dollar amount of covered sales covered sales for each month, multiply the after the date on which a regular by projecting forward the trend established in predicted ADS by the number of days in each appropriation to the Commission for the previous decade. More specifically, the month. fiscal year 2021 is enacted.12 The dollar amount of covered sales was The following is a more formal forecasted for months subsequent to (mathematical) description of the procedure: regular appropriation to the November 2020, the last month for which the Commission for fiscal year 2021 was 1. Begin with the monthly data for total Commission has data on the dollar volume of dollar volume of covered sales (column C). enacted on December 27, 2020, and 13 covered sales. The sample spans ten years, from February accordingly, the new fee rates The following sections describe this 2010–November 2020.14 Divide each month’s applicable under Sections 31(b) and (c) process in detail. total dollar volume by the number of trading of the Exchange Act will take effect on A. Baseline Estimate of the Aggregate Dollar days in that month (column B) to obtain the February 25, 2021. Amount of Covered Sales for Fiscal Year average daily dollar volume (ADS, column 2021 D). IV. Conclusion 2. For each month t, calculate the 9-month First, calculate the average daily dollar trailing moving average of ADS (shown in Accordingly, pursuant to Section 31 amount of covered sales (‘‘ADS’’) for each column E). For example, the value for of the Exchange Act, month in the sample (February 2010– October, 2011 is the average of the 9 months November 2020). The monthly total dollar It is hereby ordered that the fee rates ending in October, 2011, or February 2011 applicable under Sections 31(b) and (c) amount of covered sales (exchange plus certain OTC markets) is presented in column through October 2011 inclusive. of the Exchange Act shall be $5.10 per 3. Calculate the 1-month and 2-month lags $1,000,000 effective on February 25, C of Table A. The model forecasts the monthly moving of the trailing moving average. For example, 2021. average of the average daily dollar amount of the 1-month lag of the 9-month trailing covered sales. Each month’s average daily moving average for October, 2011 is equal to the 9-month trailing moving average for appropriation of $1,894,835,000 to the SEC for dollar amount of covered sales is calculated fiscal year 2021 operations. The Act further directed by dividing the total covered sales for that September, 2011. The 2-month lag of the 9- that ‘‘[i]n addition to the foregoing appropriation, month (column C of Table A) by the number month trailing moving average for October, for move, replication, and related costs associated of trading days for that month (column B of 2011 is equal to the 9-month trailing moving with a replacement lease for the Commission’s Table A). These amounts are shown in average for August 2011. These are shown in District of Columbia headquarters, not to exceed columns F and G. $18,650,000, to remain available until expended; column D of Table A. The moving average will span the same number of months 4. Estimate the model using ordinary least and for move, replication, and related costs squares: associated with a replacement lease for the Commission’s San Francisco Regional Office 13 To determine the availability of data, the yt = a + b1 yt-1 + b2 yt-2 + ut facilities, not to exceed $12,677,000, to remain Commission compares the date of the appropriation Where yt is the 9-month trailing moving available until expended.’’ The sum of these three with the date the transaction data are due from the average of the average daily sales for month amounts is $1,926,162,000. Finally, the Act further exchanges (10 business days after the end of the t, and yt-1 and yt-2 are the 1-month and 2- directed that ‘‘for purposes of calculating the fee month). If the business day following the date of the rate under section 31(j) . . . all amounts month lags of yt, and ut representing the error appropriation is equal to or subsequent to the date term for month t. The model can be estimated appropriated under this heading shall be deemed to the data are due from the exchanges, the be the regular appropriation to the Commission for Commission uses these data. The appropriation was using standard commercially available fiscal year 2021.’’ signed on December 27, 2020. The first business 11 Appendix A shows the process of calculating day after this date was December 28, 2020. Data for 14 Because the model uses a two period lag in the the fiscal year 2021 annual adjustment and includes November 2020 were due from the exchanges on 9-month trailing moving average of average daily the data used by the Commission in making this December 14, 2020. As a result, the Commission covered sales, ten additional months of data are adjustment. used November 2020 and earlier data to forecast added to the table so that the model is estimated 12 15 U.S.C. 78ee(j)(4)(A). volume for December 2020 and later months. with 120 observations.

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software. The estimated parameter values are (1.574199 × 527,000,127,996) + (¥0.560507 × February 24, 2021. The projected aggregate a = ¥3,106,716,928, b1 = +1.574199, b2 = 518,017,127,996) = 536,143,950,634. dollar amount of covered sales for this period ¥0.560507. The root-mean squared error 7. With the estimated 9-month trailing is $68,536,044,778,746. Actual and projected (RMSE) of the regression is 6,022,194,076. moving average ADS for December 2020 fee collections at the current fee rate of 5. The predicted value of the 9-month calculated above, one can estimate the 9- $22.10 per million are $1,514,646,590. trailing moving average of the last month to month trailing moving average ADS for 2. Estimate the amount of assessments on be forecast represents the final forecast of January, 2021. The estimate obtained from security futures products collected from covered sales for the entire prediction period. December becomes the 1-month lag for September 1, 2020 through August 31, 2021. January, and the 1-month lag used in the This value is shown in column H. This The only entity reporting assessable security December forecast becomes the 2-month lag represents the prediction for August of 2021. futures products ceased operations in for the January forecast. Thus, the predicted To calculate this value from the model above, September, 2020.16 Consequently, the one needs the 1-month and 2-month lag of 9-month trailing moving average ADS for January 2021 is calculated as: estimated amount of assessments on security the 9-month trailing moving average ADS, × futures products collected from September i.e., the 9-month trailing moving average for –3,106,716,928+ (1.574199 536,143,950,634) + (¥0.560507 × 2020 through August 2021 is equal to the June and July. The 9-month trailing moving 527,000,127,996) = 545,503,592,273. amount already reported, which is $493.87. average for July is obtained by using the 1- 8. Using the forecasts for December and 3. Subtract the amounts $1,514,646,590 month and 2-month lags for July, that is, the January, one can estimate the value for and $493.87 from the target off-setting 9-month trailing moving averages for June February. Repeat this procedure for collection amount set by Congress of and May. To arrive at all the necessary subsequent months, until the estimate for $1,926,162,000, leaving $411,514,917 to be inputs, one begins with the first month to be August 2021 is obtained. This value is collected on dollar volume for the period forecast, in this case, December 2020, and 618,941,650,406.15 This value is then used to February 25, 2021 through August 31, 2021. iterates predictions forward until the last calculate the final forecast total monthly 4. Use Table A to estimate dollar volume month is predicted. One then multiplies the covered sales for all 9 months from December final predicted 9-month trailing moving for the period February 25, 2021 through 2020 through August 2021. August 31, 2021. The estimate is average ADS by the number of days in each 9. To obtain the estimate of total monthly month to arrive at the forecast total dollar $81,081,356,203,186. Finally, compute the covered sales for each month, multiply the fee rate required to produce the additional amount of covered sales. This is shown in number of trading days in the month, shown $411,514,917 in revenue. This rate is column I. in column B in Table A, by the final forecast $411,514,917 divided by 6. For example, for December 2020, using 9-month trailing moving average ADS, shown $81,081,356,203,186 or 0.00000507533. the a, b1, and b2 parameter estimates shown in column H of Table A. This product is above, along with the 1-month and two- shown in column I of Table A, and these 5. Round the result to the seventh decimal month lags in the 9-month trailing moving figures are used to calculate the new fee rate. point, yielding a rate of 0.0000051 (or $5.10 average ADS (representing the 9-month per million). trailing moving average ADS for November B. Using the Forecasts From A To Calculate This table summarizes the estimates of the and October 2020, respectively), one can the New Fee Rate aggregate dollar amount of covered sales, by estimate the forecast 9-month trailing moving 1. Use Table A to estimate fees collected time period. The figures in this table can be average ADS for December: –3,106,716,928 + for the period September 1, 2020 through used to determine the new fee rate.

TABLE A—BASELINE ESTIMATE OF THE AGGREGATE DOLLAR AMOUNT OF SALES

Fee rate calculation

a. Baseline estimate of the aggregate dollar amount of sales, 09/01/2020 to 01/31/2021 ($Millions) ...... $58,014,037 b. Baseline estimate of the aggregate dollar amount of sales, 02/01/2021 to 02/24/2021 ($Millions) ...... 10,522,008 c. Baseline estimate of the aggregate dollar amount of sales, 02/25/2021 to 02/28/2021 ($Millions) ...... 1,237,883 d. Baseline estimate of the aggregate dollar amount of sales, 03/01/2021 to 08/31/2021 ($Millions) ...... 79,843,473 e. Estimated collections in assessments on security futures products in fiscal year 2021 ($Millions) ...... 0.026 f. Implied fee rate (($1,926,162,000 ¥ $22.10*(a + b)¥e)/(c + d) ...... 5.0

Number of Total dollar Average daily dollar 9-Month trailing moving 1 Month lag of 9-month 2 Month lag of 9-month Forecast 9-month trailing Month trading amount of amount of sales average trailing moving average trailing moving average moving average Forecast total dollar days in sales (ADS) ADS ADS ADS ADS amount of sales month

(A) (B) (C) (D) (E) (F) (G) (H) (I)

Feb-10 ...... 19 $4,969,848,578,023 $261,570,977,791 ...... Mar-10 ...... 23 5,563,529,823,621 241,892,601,027 ...... Apr-10 ...... 21 5,546,445,874,917 264,116,470,234 ...... May-10 ...... 20 7,260,430,376,294 363,021,518,815 ...... Jun-10 ...... 22 6,124,776,349,285 278,398,924,967 ...... Jul-10 ...... 21 5,058,242,097,334 240,868,671,302 ...... Aug-10 ...... 22 4,765,828,263,463 216,628,557,430 ...... Sep-10 ...... 21 4,640,722,344,586 220,986,778,314 ...... Oct-10 ...... 21 5,138,411,712,272 244,686,272,013 $259,130,085,766 ...... Nov-10 ...... 21 5,279,700,881,901 251,414,327,710 258,001,569,090 $259,130,085,766 ...... Dec-10 ...... 22 4,998,574,681,208 227,207,940,055 256,369,940,093 258,001,569,090 $259,130,085,766 ...... Jan-11 ...... 20 5,043,391,121,345 252,169,556,067 255,042,505,186 256,369,940,093 258,001,569,090 ...... Feb-11 ...... 19 5,114,631,590,581 269,191,136,346 244,616,907,134 255,042,505,186 256,369,940,093 ...... Mar-11 ...... 23 6,499,355,385,307 282,580,668,926 245,081,545,351 244,616,907,134 255,042,505,186 ...... Apr-11 ...... 20 4,975,954,868,765 248,797,743,438 245,962,553,367 245,081,545,351 244,616,907,134 ...... May-11 ...... 21 5,717,905,621,053 272,281,220,050 252,146,182,547 245,962,553,367 245,081,545,351 ...... Jun-11 ...... 22 5,820,079,494,414 264,549,067,928 256,986,436,948 252,146,182,547 245,962,553,367 ...... Jul-11 ...... 20 5,189,681,899,635 259,484,094,982 258,630,639,500 256,986,436,948 252,146,182,547 ...... Aug-11 ...... 23 8,720,566,877,109 379,155,081,613 272,824,056,601 258,630,639,500 256,986,436,948 ...... Sep-11 ...... 21 6,343,578,147,811 302,075,149,896 281,142,635,472 272,824,056,601 258,630,639,500 ...... Oct-11 ...... 21 6,163,272,963,688 293,489,188,747 285,733,705,770 281,142,635,472 272,824,056,601 ...... Nov-11 ...... 21 5,493,906,473,584 261,614,593,980 284,891,867,729 285,733,705,770 281,142,635,472 ...... Dec-11 ...... 21 5,017,867,255,600 238,946,059,790 280,043,577,825 284,891,867,729 285,733,705,770 ...... Jan-12 ...... 20 4,726,522,206,487 236,326,110,324 278,657,840,812 280,043,577,825 284,891,867,729 ...... Feb-12 ...... 20 5,011,862,514,132 250,593,125,707 276,248,052,552 278,657,840,812 280,043,577,825 ...... Mar-12 ...... 22 5,638,847,967,025 256,311,271,228 275,332,741,808 276,248,052,552 278,657,840,812 ......

15 One obtains insignificantly different values 16 OneChicago, LLC, the only reporting entity for assessments for all of fiscal year 2021 for single using the rounded parameter estimates shown single stock futures, ceased operations in stock futures is the reported assessments on single above. The predicted ADS values displayed above September, 2020; its last R–31 report was filed in stock futures from September, 2020 by OneChicago, represents the full precision estimate. October, 2020. Accordingly, the forecast for the LLC.

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Number of Total dollar Average daily dollar 9-Month trailing moving 1 Month lag of 9-month 2 Month lag of 9-month Forecast 9-month trailing Month trading amount of amount of sales average trailing moving average trailing moving average moving average Forecast total dollar days in sales (ADS) ADS ADS ADS ADS amount of sales month

(A) (B) (C) (D) (E) (F) (G) (H) (I)

Apr-12 ...... 20 5,084,239,396,560 254,211,969,828 274,746,950,124 275,332,741,808 276,248,052,552 ...... May-12 ...... 22 5,611,638,053,374 255,074,456,972 260,960,214,052 274,746,950,124 275,332,741,808 ...... Jun-12 ...... 21 5,121,896,896,362 243,899,852,208 254,496,292,087 260,960,214,052 274,746,950,124 ...... Jul-12 ...... 21 4,567,519,314,374 217,500,919,732 246,053,151,085 254,496,292,087 260,960,214,052 ...... Aug-12 ...... 23 4,621,597,884,730 200,939,038,467 239,311,422,695 246,053,151,085 254,496,292,087 ...... Sep-12 ...... 19 4,598,499,962,682 242,026,313,825 239,653,673,143 239,311,422,695 246,053,151,085 ...... Oct-12 ...... 21 5,095,175,588,310 242,627,408,967 240,353,817,437 239,653,673,143 239,311,422,695 ...... Nov-12 ...... 21 4,547,882,974,292 216,565,855,919 236,573,009,683 240,353,817,437 239,653,673,143 ...... Dec-12 ...... 20 4,744,922,754,360 237,246,137,718 234,454,661,515 236,573,009,683 240,353,817,437 ...... Jan-13 ...... 21 5,079,603,817,496 241,885,896,071 233,085,097,764 234,454,661,515 236,573,009,683 ...... Feb-13 ...... 19 4,800,663,527,089 252,666,501,426 232,817,547,148 233,085,097,764 234,454,661,515 ...... Mar-13 ...... 20 4,917,701,839,870 245,885,091,993 233,038,129,346 232,817,547,148 233,085,097,764 ...... Apr-13 ...... 22 5,451,358,637,079 247,789,028,958 236,403,474,816 233,038,129,346 232,817,547,148 ...... May-13 ...... 22 5,681,788,831,869 258,263,128,721 242,772,818,178 236,403,474,816 233,038,129,346 ...... Jun-13 ...... 20 5,623,545,462,226 281,177,273,111 247,122,924,765 242,772,818,178 236,403,474,816 ...... Jul-13 ...... 22 5,083,861,509,754 231,084,614,080 245,840,392,000 247,122,924,765 242,772,818,178 ...... Aug-13 ...... 22 4,925,611,193,095 223,891,417,868 246,654,343,327 245,840,392,000 247,122,924,765 ...... Sep-13 ...... 20 4,959,197,626,713 247,959,881,336 247,844,759,285 246,654,343,327 245,840,392,000 ...... Oct-13 ...... 23 5,928,804,028,970 257,774,088,216 249,610,113,968 247,844,759,285 246,654,343,327 ...... Nov-13 ...... 20 5,182,024,612,049 259,101,230,602 250,325,083,876 249,610,113,968 247,844,759,285 ...... Dec-13 ...... 21 5,265,282,994,173 250,727,761,627 250,863,158,280 250,325,083,876 249,610,113,968 ...... Jan-14 ...... 21 5,808,700,114,288 276,604,767,347 254,064,906,990 250,863,158,280 250,325,083,876 ...... Feb-14 ...... 19 6,018,926,931,054 316,785,627,950 260,567,406,904 254,064,906,990 250,863,158,280 ...... Mar-14 ...... 21 6,068,617,342,988 288,981,778,238 261,434,574,140 260,567,406,904 254,064,906,990 ...... Apr-14 ...... 21 6,013,948,953,528 286,378,521,597 267,578,341,642 261,434,574,140 260,567,406,904 ...... May-14 ...... 21 5,265,594,447,318 250,742,592,729 270,561,805,516 267,578,341,642 261,434,574,140 ...... Jun-14 ...... 21 5,159,506,989,669 245,690,809,032 270,309,686,371 270,561,805,516 267,578,341,642 ...... Jul-14 ...... 22 5,364,099,567,460 243,822,707,612 268,759,532,970 270,309,686,371 270,561,805,516 ...... Aug-14 ...... 21 5,075,332,147,677 241,682,483,223 266,824,116,595 268,759,532,970 270,309,686,371 ...... Sep-14 ...... 21 5,507,943,363,243 262,283,017,297 268,108,033,892 266,824,116,595 268,759,532,970 ...... Oct-14 ...... 23 7,796,638,035,879 338,984,262,430 275,039,088,901 268,108,033,892 266,824,116,595 ...... Nov-14 ...... 19 5,340,847,027,697 281,097,211,984 271,073,709,349 275,039,088,901 268,108,033,892 ...... Dec-14 ...... 22 6,559,110,068,128 298,141,366,733 272,091,441,404 271,073,709,349 275,039,088,901 ...... Jan-15 ...... 20 6,185,619,541,044 309,280,977,052 274,636,158,677 272,091,441,404 271,073,709,349 ...... Feb-15 ...... 19 5,723,523,235,641 301,238,065,034 280,246,766,711 274,636,158,677 272,091,441,404 ...... Mar-15 ...... 22 6,395,046,297,249 290,683,922,602 285,246,001,552 280,246,766,711 274,636,158,677 ...... Apr-15 ...... 21 5,625,548,298,004 267,883,252,286 287,919,395,405 285,246,001,552 280,246,766,711 ...... May-15 ...... 20 5,521,351,972,386 276,067,598,619 291,739,963,782 287,919,395,405 285,246,001,552 ...... Jun-15 ...... 22 6,005,521,460,806 272,978,248,218 292,928,322,773 291,739,963,782 287,919,395,405 ...... Jul-15 ...... 22 6,493,670,315,390 295,166,832,518 288,059,719,450 292,928,322,773 291,739,963,782 ...... Aug-15 ...... 21 6,963,901,249,270 331,614,345,203 293,672,734,252 288,059,719,450 292,928,322,773 ...... Sep-15 ...... 21 6,434,496,770,897 306,404,608,138 294,590,872,186 293,672,734,252 288,059,719,450 ...... Oct-15 ...... 22 6,592,594,708,082 299,663,395,822 293,522,252,049 294,590,872,186 293,672,734,252 ...... Nov-15 ...... 20 5,822,824,015,945 291,141,200,797 292,400,378,245 293,522,252,049 294,590,872,186 ...... Dec-15 ...... 22 6,384,337,478,801 290,197,158,127 292,346,293,303 292,400,378,245 293,522,252,049 ...... Jan-16 ...... 19 6,696,059,796,055 352,424,199,792 301,739,731,915 292,346,293,303 292,400,378,245 ...... Feb-16 ...... 20 6,659,878,908,747 332,993,945,437 308,064,881,562 301,739,731,915 292,346,293,303 ...... Mar-16 ...... 22 6,161,943,754,542 280,088,352,479 308,854,893,146 308,064,881,562 301,739,731,915 ...... Apr-16 ...... 21 5,541,076,988,322 263,860,808,968 305,376,446,085 308,854,893,146 308,064,881,562 ...... May-16 ...... 21 5,693,520,415,112 271,120,019,767 298,654,854,370 305,376,446,085 308,854,893,146 ...... Jun-16 ...... 22 6,317,212,852,759 287,146,038,762 296,515,013,328 298,654,854,370 305,376,446,085 ...... Jul-16 ...... 20 5,331,797,261,269 266,589,863,063 292,840,176,355 296,515,013,328 298,654,854,370 ...... Aug-16 ...... 23 5,635,976,607,786 245,042,461,208 287,718,094,178 292,840,176,355 296,515,013,328 ...... Sep-16 ...... 21 5,942,072,286,976 282,955,823,189 286,913,501,407 287,718,094,178 292,840,176,355 ...... Oct-16 ...... 21 5,460,906,573,682 260,043,170,175 276,648,942,561 286,913,501,407 287,718,094,178 ...... Nov-16 ...... 21 6,845,287,809,886 325,966,086,185 275,868,069,311 276,648,942,561 286,913,501,407 ...... Dec-16 ...... 21 6,208,579,880,985 295,646,660,999 277,596,770,257 275,868,069,311 276,648,942,561 ...... Jan-17 ...... 20 5,598,200,907,603 279,910,045,380 279,380,018,748 277,596,770,257 275,868,069,311 ...... Feb-17 ...... 19 5,443,426,609,533 286,496,137,344 281,088,476,256 279,380,018,748 277,596,770,257 ...... Mar-17 ...... 23 6,661,861,914,530 289,646,170,197 281,366,268,638 281,088,476,256 279,380,018,748 ...... Apr-17 ...... 19 5,116,714,033,499 269,300,738,605 281,667,477,031 281,366,268,638 281,088,476,256 ...... May-17 ...... 22 6,305,822,460,672 286,628,293,667 286,288,125,082 281,667,477,031 281,366,268,638 ...... Jun-17 ...... 22 6,854,993,097,601 311,590,595,346 289,469,766,433 286,288,125,082 281,667,477,031 ...... Jul-17 ...... 20 5,394,333,070,522 269,716,653,526 290,544,597,917 289,469,766,433 286,288,125,082 ...... Aug-17 ...... 23 6,206,204,906,864 269,834,995,951 284,307,810,113 290,544,597,917 289,469,766,433 ...... Sep-17 ...... 20 5,939,886,169,525 296,994,308,476 284,457,548,721 284,307,810,113 290,544,597,917 ...... Oct-17 ...... 22 6,134,529,538,894 278,842,251,768 284,338,904,987 284,457,548,721 284,307,810,113 ...... Nov-17 ...... 21 6,289,748,560,897 299,511,836,233 285,785,093,752 284,338,904,987 284,457,548,721 ...... Dec-17 ...... 20 6,672,181,323,001 333,609,066,150 290,669,859,969 285,785,093,752 284,338,904,987 ...... Jan-18 ...... 21 7,672,288,677,308 365,347,079,872 301,341,675,665 290,669,859,969 285,785,093,752 ...... Feb-18 ...... 19 8,725,420,462,639 459,232,655,928 320,519,938,139 301,341,675,665 290,669,859,969 ...... Mar-18 ...... 21 8,264,755,011,030 393,559,762,430 329,627,623,370 320,519,938,139 301,341,675,665 ...... Apr-18 ...... 21 7,490,308,402,446 356,681,352,497 339,290,367,701 329,627,623,370 320,519,938,139 ...... May-18 ...... 22 7,242,077,467,361 329,185,339,426 345,884,850,309 339,290,367,701 329,627,623,370 ...... Jun-18 ...... 21 7,936,783,802,579 377,942,085,837 354,879,047,793 345,884,850,309 339,290,367,701 ...... Jul-18 ...... 21 6,807,593,326,456 324,171,110,784 359,915,587,684 354,879,047,793 345,884,850,309 ...... Aug-18 ...... 23 7,363,115,477,823 320,135,455,558 362,207,100,942 359,915,587,684 354,879,047,793 ...... Sep-18 ...... 19 6,781,988,459,996 356,946,761,052 364,800,178,154 362,207,100,942 359,915,587,684 ...... Oct-18 ...... 23 10,133,514,482,168 440,587,586,181 373,160,234,410 364,800,178,154 362,207,100,942 ...... Nov-18 ...... 21 8,414,847,862,204 400,707,041,057 366,657,388,314 373,160,234,410 364,800,178,154 ...... Dec-18 ...... 19 9,075,221,733,736 477,643,249,144 375,999,997,948 366,657,388,314 373,160,234,410 ...... Jan-19 ...... 21 7,960,664,643,749 379,079,268,750 378,488,655,310 375,999,997,948 366,657,388,314 ...... Feb-19 ...... 19 6,676,391,653,247 351,389,034,381 380,955,732,527 378,488,655,310 375,999,997,948 ...... Mar-19 ...... 21 7,828,979,311,928 372,808,538,663 380,385,338,397 380,955,732,527 378,488,655,310 ...... Apr-19 ...... 21 6,907,923,076,080 328,948,717,909 380,916,183,633 380,385,338,397 380,955,732,527 ...... May-19 ...... 22 7,895,053,976,747 358,866,089,852 385,219,587,443 380,916,183,633 380,385,338,397 ...... Jun-19 ...... 20 7,070,583,442,058 353,529,172,103 384,839,855,338 385,219,587,443 380,916,183,633 ...... Jul-19 ...... 22 6,792,811,319,721 308,764,150,896 370,192,806,973 384,839,855,338 385,219,587,443 ...... Aug-19 ...... 22 8,059,527,400,976 366,342,154,590 366,374,486,254 370,192,806,973 384,839,855,338 ...... Sep-19 ...... 20 6,958,132,871,506 347,906,643,575 351,959,307,858 366,374,486,254 370,192,806,973 ...... Oct-19 ...... 23 7,235,982,824,882 314,607,948,908 344,795,827,875 351,959,307,858 366,374,486,254 ...... Nov-19 ...... 20 6,784,888,230,209 339,244,411,510 343,446,425,334 344,795,827,875 351,959,307,858 ...... Dec-19 ...... 21 7,252,856,724,647 345,374,129,745 340,398,157,677 343,446,425,334 344,795,827,875 ...... Jan-20 ...... 21 8,178,172,797,805 389,436,799,895 347,119,055,675 340,398,157,677 343,446,425,334 ...... Feb-20 ...... 19 8,951,554,790,521 471,134,462,659 359,593,319,320 347,119,055,675 340,398,157,677 ...... Mar-20 ...... 22 16,218,726,536,159 737,214,842,553 402,225,060,481 359,593,319,320 347,119,055,675 ...... Apr-20 ...... 21 10,289,596,902,933 489,980,804,902 422,360,244,260 402,225,060,481 359,593,319,320 ...... May-20 ...... 20 9,435,524,799,540 471,776,239,977 434,075,142,636 422,360,244,260 402,225,060,481 ...... Jun-20 ...... 22 12,093,857,552,130 549,720,797,824 456,498,937,553 434,075,142,636 422,360,244,260 ...... Jul-20 ...... 22 10,355,334,352,448 470,697,016,020 473,842,167,232 456,498,937,553 434,075,142,636 ...... Aug-20 ...... 21 9,763,364,099,611 464,922,099,981 487,806,354,840 473,842,167,232 456,498,937,553 ...... Sep-20 ...... 21 11,545,568,415,944 549,788,972,188 510,519,115,111 487,806,354,840 473,842,167,232 ...... Oct-20 ...... 22 10,052,383,756,890 456,926,534,404 518,017,974,501 510,519,115,111 487,806,354,840 ...... Nov-20 ...... 20 11,039,476,882,364 551,973,844,118 527,000,127,996 518,017,974,501 510,519,115,111 ...... Dec-20 ...... 22 ...... 527,000,127,996 518,017,974,501 $618,941,650,406 $13,616,716,308,932 Jan-21 ...... 19 ...... 527,000,127,996 618,941,650,406 11,759,891,357,714 Feb-21 ...... 19 ...... 618,941,650,406 11,759,891,357,714

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Number of Total dollar Average daily dollar 9-Month trailing moving 1 Month lag of 9-month 2 Month lag of 9-month Forecast 9-month trailing Month trading amount of amount of sales average trailing moving average trailing moving average moving average Forecast total dollar days in sales (ADS) ADS ADS ADS ADS amount of sales month

(A) (B) (C) (D) (E) (F) (G) (H) (I)

Mar-21 ...... 23 ...... 618,941,650,406 14,235,657,959,338 Apr-21 ...... 21 ...... 618,941,650,406 12,997,774,658,526 May-21 ...... 20 ...... 618,941,650,406 12,378,833,008,120 Jun-21 ...... 22 ...... 618,941,650,406 13,616,716,308,932 Jul-21 ...... 21 ...... 618,941,650,406 12,997,774,658,526 Aug-21 ...... 22 ...... 618,941,650,406 13,616,716,308,932

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[FR Doc. 2021–01341 Filed 1–21–21; 8:45 am] A. Self-Regulatory Organization’s Customer,6 Firm,7 or BX Options Market 8 BILLING CODE 8011–01–P Statement of the Purpose of, and Maker (including LMMs). Statutory Basis for, the Proposed Rule The Exchange now proposes to Change increase this rebate to $0.11 per contract SECURITIES AND EXCHANGE for LMMs only. This rebate will apply COMMISSION 1. Purpose to LMMs in their specifically allocated options classes, and will have the same Today, Lead Market Makers qualifications as the existing BX [Release No. 34–90936; File No. SR–BX– 3 (‘‘LMMs’’) are assessed the same fees Options Market Maker rebate in that the 2021–001] and rebates in Options 7, Section 2 as incentive will only be provided to BX Options Market Makers.4 The LMMs that are contra to Non-Customers, Self-Regulatory Organizations; Nasdaq purpose of the proposed rule change is BX, Inc.; Notice of Filing and Firms, BX Options Market Makers, or to amend Options 7, Section 2 to (i) LMMs. To effect this change, the Immediate Effectiveness of Proposed increase the LMM Rebate to Add Exchange proposes to set forth the LMM Rule Change To Amend the BX Liquidity, (ii) decrease the LMM Fee to Rebate to Add Liquidity in Penny Options Pricing Schedule Add Liquidity, and (iii) restructure the Symbols in a separate pricing column in January 15, 2021. existing pricing schedules to add Options 7, Section 2(1). The Exchange separate pricing for LMMs, which will will also amend the rebate qualifications Pursuant to Section 19(b)(1) of the apply in each case to LMMs in their in note 2 of Options 7, Section 2(1) to Securities Exchange Act of 1934 specifically appointed options classes. include LMMs. As amended, note 2 will 1 2 (‘‘Act’’), and Rule 19b–4 thereunder, As described in detail below, while the provide that the Rebate to Add Liquidity notice is hereby given that on January 4, Exchange is proposing to add separate will be paid to a BX Options Market 2021, Nasdaq BX, Inc. (‘‘BX’’ or pricing for LMMs in the existing Maker or a Lead Market Maker only ‘‘Exchange’’) filed with the Securities schedules, LMMs will continue to be when the BX Options Market Maker or and Exchange Commission (‘‘SEC’’ or assessed the same BX Options Market Lead Market Maker is contra to a Non- Customer, Firm, BX Options Market ‘‘Commission’’) the proposed rule Makers fees and rebates in their Maker, or Lead Market Maker. change as described in Items I, II, and specifically allocated options classes III, below, which Items have been under this proposal except with respect LMM Fee To Add Liquidity prepared by the Exchange. The to the proposed LMM Rebate to Add Today, as set forth in Options 7, Commission is publishing this notice to Liquidity and proposed LMM Fee to Section 2(1), LMMs are charged the solicit comments on the proposed rule Add Liquidity. The Exchange also $0.39 per contract BX Options Market change from interested persons. proposes to amend its Opening Cross 5 Maker Fee to Add Liquidity in Penny I. Self-Regulatory Organization’s pricing provisions in Options 7, Section Symbols in their specifically allocated Statement of the Terms of Substance of 2(2) to correct an inadvertent omission. options classes. Pursuant to note 3 of the Proposed Rule Change Lastly, the Exchange proposes various Options 7, Section 2(1), this fee is technical, non-substantive changes assessed only when the LMM is contra The Exchange proposes to amend the throughout Options 7, including to to a Customer.9 BX Options Pricing Schedule at Options update cross-cites to obsolete rules. The Exchange now proposes to 7. decrease this fee to $0.38 per contract The proposed changes respond in part The text of the proposed rule change for LMMs only. This fee will apply to to the current competitive environment LMMs in their specifically allocated is available on the Exchange’s website at where market participants have a choice options classes, and will have the same https://listingcenter.nasdaq.com/ of where to direct order flow by qualifications as the existing BX rulebook/bx/rules, at the principal office incentivizing LMMs to increase their Options Market Maker fee in that the fee of the Exchange, and at the liquidity provision on the Exchange. only will be assessed to LMMs that are Commission’s Public Reference Room. LMM Rebate To Add Liquidity contra to Customers. To effect this II. Self-Regulatory Organization’s change, the Exchange proposes to set Statement of the Purpose of, and Today, as set forth in Options 7, forth the LMM Fee to Add Liquidity in Statutory Basis for, the Proposed Rule Section 2(1), LMMs are provided the Penny Symbols in a separate pricing Change $0.10 per contract BX Options Market column in Options 7, Section 2(1). The Maker Rebate to Add Liquidity in Penny Exchange will also amend the fee In its filing with the Commission, the Symbols in their specifically allocated qualifications in note 3 of Options 7, Exchange included statements options classes. This rebate is provided Section 2(1) to include LMMs. As concerning the purpose of and basis for only when the LMM is contra to a Non- amended, note 3 will provide that the the proposed rule change and discussed Fee to Add Liquidity will be assessed to any comments it received on the a BX Options Market Maker or a Lead proposed rule change. The text of these 3 The term ‘‘Lead Market Maker’’ or (‘‘LMM’’) statements may be examined at the applies to a registered BX Options Market Maker 6 A Non-Customer includes a Professional, that is approved pursuant to Options 2, Section 3 Broker-Dealer and Non-BX Options Market Maker. places specified in Item IV below. The to be the LMM in an options class (options classes). 7 The term ‘‘Firm’’ or (‘‘F’’) applies to any Exchange has prepared summaries, set 4 The term ‘‘BX Options Market Maker’’ or (‘‘M’’) transaction that is identified by a Participant for forth in sections A, B, and C below, of is a Participant that has registered as a Market clearing in the Firm range at OCC. 8 the most significant aspects of such Maker on BX Options pursuant to Options 2, See Options 7, Section 2(1), note 2. 9 Section 1, and must also remain in good standing The term ‘‘Customer’’ or (‘‘C’’) applies to any statements. transaction that is identified by a Participant for pursuant to Options 2, Section 9. In order to receive clearing in the Customer range at The Options Market Maker pricing in all securities, the Clearing Corporation (‘‘OCC’’) which is not for the Participant must be registered as a BX Options account of broker or dealer or for the account of a 1 15 U.S.C. 78s(b)(1). Market Maker in at least one security. ‘‘Professional’’ (as that term is defined in Options 2 17 CFR 240.19b–4. 5 See Options 3, Section 8. 1, Section 1(a)(48)).

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Market Maker only when the BX Market Makers fees and rebates in their Penny Symbol Tier Schedules within Options Market Maker or Lead Market specifically allocated options classes Options 7, Section 2(1), the Exchange Maker is contra to a Customer. under this proposal except with respect also proposes to add LMMs next to each to the new LMM Rebate to Add instance of BX Options Market Maker. Separate LMM Pricing Liquidity and new LMM Fee to Add The Exchange will make similar The Exchange also proposes to Liquidity discussed above. changes to note 4 of Options 7, Section restructure the existing pricing To effect this change, the Exchange 2(1) to add ‘‘or a Lead Market Maker’’ schedules to add separate pricing for first proposes to amend the fees and after each instance of BX Options LMMs. As noted above, while the rebates for Penny and Non-Penny Market Maker. As amended, the pricing Exchange is proposing to add separate Symbols in Options 7, Section 2(1) by schedules and accompanying notes for pricing for LMMs, LMMs will continue adding a separate column for LMM Penny and Non-Penny Symbols will be to be assessed the same BX Options pricing. In the Penny Symbol and Non- as follows:

FEES AND REBATES [Per executed contract]

Customer Lead market BX options Non- Firm maker market maker customer 1

Penny Symbols: Rebate to Add Liquidity ...... # 2 $0.11 2 $0.10 N/A N/A Fee to Add Liquidity ...... # 3 0.38 3 0.39 0.45 0.45 Rebate to Remove Liquidity ...... # N/A N/A N/A N/A Fee to Remove Liquidity ...... N/A # # 0.46 0.46 Non-Penny Symbols: ...... Rebate to Add Liquidity ...... * N/A N/A N/A N/A Fee to Add Liquidity ...... * 4 0.50/0.95 4 0.50/0.95 0.98 0.98 Rebate to Remove Liquidity ...... * N/A N/A N/A N/A Fee to Remove Liquidity ...... N/A * * 0.89 0.89 1 A Non-Customer includes a Professional, Broker-Dealer and Non-BX Options Market Maker. 2 The Rebate to Add Liquidity will be paid to a BX Options Market Maker or a Lead Market Maker only when the BX Options Market Maker or Lead Market Maker is contra to a Non-Customer, Firm, BX Options Market Maker, or Lead Market Maker. 3 The Fee to Add Liquidity will be assessed to a BX Options Market Maker or a Lead Market Maker only when the BX Options Market Maker or Lead Market Maker is contra to a Customer. 4 The higher Fee to Add Liquidity will be assessed to a BX Options Market Maker or a Lead Market Maker only when the BX Options Market Maker or Lead Market Maker is contra to a Customer. # Penny Symbols Tier Schedule

When: Rebate to add Fee to add Rebate to remove Fee to remove Fee to remove liquidity liquidity liquidity liquidity liquidity Customer Customer Customer Lead market Lead market maker or BX maker or BX options market options market maker maker Trading with: Non-customer, Non-customer, lead market lead market Non-customer, maker, BX options Customer maker, BX options lead market market maker, or market maker, Customer maker, BX options firm customer, or firm market maker, or firm

Tier 1: Participant executes less than 0.05% of total industry customer eq- uity and ETF option ADV contracts per month...... $0.00 $0.39 $0.00 $0.39 $0.46 Tier 2: Participant executes 0.05% to less than 0.15% of total industry cus- tomer equity and ETF option ADV contracts per month ...... 0.10 0.39 0.25 0.39 0.46 Tier 3: Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per month ...... 0.20 0.39 0.35 0.30 0.46

* Non-Penny Symbols Tier Schedule

Tier 1: Participant executes less than 0.05% of total industry customer eq- uity and ETF option ADV contracts per month...... 0.00 0.85 0.80 0.89 0.89 Tier 2: Participant executes 0.05% to less than 0.15% of total industry cus- tomer equity and ETF option ADV ..... contracts per month ...... 0.10 0.85 0.80 0.89 0.89

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When: Rebate to add Fee to add Rebate to remove Fee to remove Fee to remove liquidity liquidity liquidity liquidity liquidity Customer Customer Customer Lead market Lead market maker or BX maker or BX options market options market maker maker Trading with: Non-customer, Non-customer, lead market lead market Non-customer, maker, BX options Customer maker, BX options lead market market maker, or market maker, Customer maker, BX options firm customer, or firm market maker, or firm

Tier 3: Participant executes 0.15% or more of total industry customer equity and ETF option ADV contracts per month ...... 0.20 0.85 0.80 0.60 0.89

As shown above, the only fee changes under this proposal (i.e., the same as BX mechanism,10 the Exchange proposes to relate to the proposed LMM Rebate to Options Market Makers). add a separate pricing column for LMMs Add Liquidity in Penny Symbols and The Exchange also proposes to make that will set forth the same fees and the proposed LMM Fee to Add Liquidity similar changes in Options 7, Section rebates that LMMs are assessed today in Penny Symbols. Otherwise, LMMs 2(4) and Section 2(5) to add separate (i.e., the same as BX Options Market will continue to be charged at the same pricing for LMMs. In Section 2(4), Makers). As amended, the pricing rate for Penny and Non-Penny Symbols which sets forth pricing for orders schedule for exposure orders in Section executed in the Exchange’s exposure 2(4) will be as follows:

FEES AND REBATES [Per executed contract]

Lead market BX options Customer maker market maker Non-customer

Penny Symbols: Rebate for Order triggering order exposure alert ...... $0.34 $0.00 $0.00 $0.00 Fee for Order responding to order exposure alert ...... 0.39 0.39 0.39 0.45 Non-Penny Symbols ...... Rebate for Order triggering order exposure alert ...... 0.70 0.00 0.00 0.00 Fee for Order responding to order exposure alert ...... 0.85 0.85 0.85 0.89

In Section 2(5), which sets forth proposes to add a separate pricing row Market Makers). As amended, the pricing for orders executed in the for LMMs that will set forth the same pricing schedule for PRISM orders in Exchange’s Price Improvement fees and rebates that LMMs are assessed Section 2(5) will be as follows: Mechanism (‘‘PRISM’’),11 the Exchange today (i.e., the same as BX Options

FEES AND REBATES [Per contact]

Submitted Responded to PRISM auction PRISM order traded with PRISM order PRISM response Fee Type of market participants Agency order Fee Rebate Contra-side Penny classes Non-penny Non-penny order classes Penny classes classes

Customer ...... $0.00 $0.00 $0.49 $0.94 $0.35 $0.70 Lead Market Maker ...... 0.30 0.05 0.49 0.94 0.00 0.00 BX Options Market Maker ...... 0.30 0.05 0.49 0.94 0.00 0.00 Non-Customer ...... 0.30 0.05 0.49 0.94 0.00 0.00

Opening Cross inadvertent omission. Specifically, the among other things, adopted the pricing Exchange submitted a rule filing for market participants during the The Exchange proposes to amend its effective on July 3, 2012 to adopt fees Opening Cross (‘‘2012 Filing’’).12 As Opening Cross pricing provisions in Options 7, Section 2(2) to correct an and rebates for BX Options, which, discussed in the 2012 Filing, BX’s

10 See Options 5, Section 4. 12 See Securities Exchange Act Release No. 67339 11 See Options 3, Section 13. (July 3, 2012), 77 FR 40688 (July 10, 2012) (SR–BX– 2012–043).

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Opening Cross pricing was intended to Technical Changes afford to take its market share be similar to the Opening Cross pricing The Exchange proposes a number of percentages for granted’ because ‘no on its affiliate, The Nasdaq Options technical, non-substantive changes in exchange possesses a monopoly, Market (‘‘NOM’’), in that BX would Options 7. The Exchange first proposes regulatory or otherwise, in the execution similarly assess a Fee to Remove to add ‘‘Section 1 General Provisions’’ at of order flow from broker 18 Liquidity on all market participants, the beginning of the Pricing Schedule. dealers’....’’ other than a Customer, during the The Exchange will also remove ‘‘Section The Commission and the courts have Opening Cross. Indeed, NOM’s Pricing 1’’ before the title ‘‘Collection of repeatedly expressed their preference Schedule specifically states that Exchange Fees and Other Claims-BX for competition over regulatory ‘‘Broker-Dealers, Professionals, Firms, Options’’ and incorporate those intervention in determining prices, Non-NOM Market Makers and NOM provisions within the new Section 1, products, and services in the securities Market Makers will be assessed the Fee which will include other provisions markets. In Regulation NMS, while for Removing Liquidity during the such as the Pricing Schedule adopting a series of steps to improve the Exchange’s Opening Cross.’’ 13 definitions. This change will assist current market model, the Commission Accordingly, the 2012 Filing should Participants when citing to these highlighted the importance of market have likewise reflected that BX Options defined terms, which currently has no forces in determining prices and SRO Market Makers would be assessed the section reference. revenues and, also, recognized that Fee to Remove Liquidity during the The Exchange also proposes to update current regulation of the market system Exchange’s Opening Cross. However, obsolete rule citations within proposed ‘‘has been remarkably successful in the 2012 Filing inadvertently omitted Section 1 to reflect the current rules.14 promoting market competition in its broader forms that are most important to these market participants in the Exhibit The Exchange previously relocated the investors and listed companies.’’ 19 5 rule text. As a result of this drafting Rulebook and certain cross-cites were Numerous indicia demonstrate the not updated.15 error, the current rule in Options 7, competitive nature of this market. For Section 2(2) incorrectly indicates that 2. Statutory Basis example, clear substitutes to the only Professionals, Firms, Broker- The Exchange believes that its Exchange exist in the market for options Dealers and Non-BX Options Market security transaction services. The Makers will be assessed the Fee to proposal is consistent with Section 6(b) of the Act,16 in general, and furthers the Exchange is only one of sixteen options Remove Liquidity during the Opening exchanges to which market participants Cross. Therefore, the Exchange proposes objectives of Sections 6(b)(4) and 6(b)(5) 17 may direct their order flow. Competing to add that BX Options Market Makers of the Act, in particular, in that it provides for the equitable allocation of options exchanges offer similar pricing will be assessed the Fee to Remove structures to that of the Exchange, Liquidity during the Exchange’s reasonable dues, fees and other charges among members and issuers and other including schedules of rebates and fees Opening Cross. The Exchange notes that persons using any facility, and is not that differentiate between LMMs and this change is corrective in nature and 20 designed to permit unfair other market participants. does not change any rates that are discrimination between customers, Within this environment, market currently applied to BX Options Market issuers, brokers, or dealers. participants can freely and often do shift Makers during the Opening Cross. The Exchange’s proposed changes to their order flow among the Exchange The Exchange also proposes a non- its schedule of credits are reasonable in and competing venues in response to substantive change in this section to several respects. As a threshold matter, changes in their respective pricing replace Professionals, Broker-Dealers, the Exchange is subject to significant schedules. As such, the proposal and Non-BX Options Market Makers competitive forces in the market for represents a reasonable attempt by the with the term ‘‘Non-Customers,’’ which options securities transaction services Exchange to increase its liquidity and encompasses those market participant that constrain its pricing determinations market share relative to its competitors. types. Finally, in light of the proposed in that market. The fact that this market LMM Rebate To Add Liquidity changes to separately provide for LMM is competitive has long been recognized The Exchange believes that the pricing throughout Options 7, Section 2 by the courts. In NetCoalition v. proposed LMM Rebate to Add Liquidity by adding LMMs next to each instance Securities and Exchange Commission, in Penny Symbols is reasonable, of BX Options Market Makers, the the D.C. Circuit stated as follows: ‘‘[n]o equitable, and not unfairly Exchange proposes to add LMMs to the one disputes that competition for order discriminatory. The proposal will offer Opening Cross pricing provisions in flow is ‘fierce.’ . . . As the SEC a higher $0.11 per contract rebate to Section 2(2). As discussed above, LMMs explained, ‘[i]n the U.S. national market qualifying LMMs in their specifically are currently charged the same rates as system, buyers and sellers of securities, allocated options classes along the same BX Options Market Makers, including and the broker-dealers that act as their lines as the existing $0.10 per contract during the Opening Cross (i.e., the Fee order-routing agents, have a wide range BX Options Market Maker Rebate to of choices of where to route orders for to Remove Liquidity), and the Exchange Add Liquidity in Penny Symbols (i.e., execution’; [and] ‘no exchange can is not proposing to amend the current only if the order is contra to Non- rates applied to LMMs during the Customers, Firms, BX Options Market 14 In particular, the Exchange will update obsolete Opening Cross. With the proposed Makers, or LMMs). The Exchange changes, the last sentence of Options 7, cross-cites in the definitions of ‘‘Customer,’’ ‘‘BX Options Market Maker,’’ ‘‘Lead Market Maker,’’ Section 2(2) will now provide: ‘‘Lead ‘‘Professional,’’ and ‘‘Joint Back Office.’’ Similarly, 18 NetCoalition v. SEC, 615 F.3d 525, 539 (DC Cir. Market Makers, BX Options Market the Exchange will also update the obsolete cross- 2010) (quoting Securities Exchange Act Release No. Makers, Non-Customers, and Firms will cite in current Section 1 (Collection of Exchange 59039 (December 2, 2008), 73 FR 74770, 74782–83 be assessed the Fee to Remove Liquidity Fees and Other Claims-BX Options). (December 9, 2008) (SR–NYSEArca–2006–21)). 15 19 during the Exchange’s Opening Cross.’’ See Securities Exchange Act Release No. 84326 Securities Exchange Act Release No. 51808 (October 1, 2018), 83 FR 50414 (October 5, 2018) (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (SR–BX–2018–046). (‘‘Regulation NMS Adopting Release’’). 13 See NOM Options 7, Section 2(2) (emphasis 16 15 U.S.C. 78f(b). 20 See, e.g., NYSE Arca Options Fees and Charges, added). 17 15 U.S.C. 78f(b)(4) and (5). Trade-Related Charges for Standard Options.

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believes that the proposed rebate will fee to LMMs is equitable and not proposed change to replace incentivize LMMs to increase their unfairly discriminatory. Professionals, Broker-Dealers, and Non- liquidity provision on the Exchange, BX Options Market Makers with the Separate LMM Pricing which will ultimately benefit all market term ‘‘Non-Customers,’’ which participants through the quality of order The Exchange believes that its encompasses those market participant interaction. proposal to restructure the pricing types, is non-substantive in nature. The Exchange further believes that the schedules in Options 7, Section 2 to add Accordingly, the Exchange believes that proposed differentiation between LMMs separate pricing for LMMs is reasonable, foregoing modifications are reasonable, and other market participants through equitable, and not unfairly equitable, and not unfairly the higher $0.11 per contract Rebate to discriminatory. While the Exchange is discriminatory. proposing to add separate pricing for Add Liquidity recognizes the differing Technical Changes contributions made to the liquidity and LMMs, LMMs will continue to be trading environment on the Exchange by assessed the same BX Options Market The Exchange believes that the LMMs through their quoting obligations Makers fees and rebates in their proposed technical changes described and their commitment of capital, unlike specifically allocated options classes above are reasonable, equitable, and not other market participants. In addition, under this proposal except with respect unfairly discriminatory as they are all LMMs are subject to heightened quoting to the higher LMM Rebate to Add non-substantive changes intended to obligations compared to BX Options Liquidity in Penny Symbols and lower promote greater clarity and transparency Market Makers.21 Accordingly, the LMM Fee to Add Liquidity in Penny to the Exchange’s Pricing Schedule. Symbols, as discussed above. The Exchange believes that offering a higher B. Self-Regulatory Organization’s Exchange believes that separately rebate to LMMs is equitable and not Statement on Burden on Competition unfairly discriminatory. providing for LMMs throughout the pricing schedules in Options 7, Section The Exchange does not believe that LMM Fee To Add Liquidity 2 will provide greater clarity and the proposed rule change will impose any burden on competition not The Exchange believes that the transparency as to what fees and rebates necessary or appropriate in furtherance proposed LMM Fee to Add Liquidity in are assessed to this type of market of the purposes of the Act. In terms of Penny Symbols is reasonable, equitable participant. intra-market competition, the proposed and not unfairly discriminatory. The Opening Cross pricing changes are designed to attract proposal will assess a lower $0.38 per The Exchange believes that the additional order flow to the Exchange. contract fee to LMMs in their proposed changes to the Opening Cross The Exchange believes that the specifically allocated options classes pricing provisions in Options 7, Section proposed higher LMM Rebate to Add along the same lines as the existing 2(2) is reasonable, equitable, and not Liquidity and lower LMM Fee to Add $0.39 per contract BX Options Market unfairly discriminatory as it does not Liquidity will continue to incentivize Maker Fee to Add Liquidity in Penny change the pricing currently assessed by LMMs to direct their order flow to the Symbols (i.e., only if the order is contra the Exchange during the Opening Cross, Exchange. Greater liquidity benefits all to Customers). The Exchange believes but rather corrects an inadvertent market participants on the Exchange by that the proposed fee remains omission by the 2012 Filing to include providing more trading opportunities competitive and will continue to attract BX Options Market Makers within and encourages LMMs to send orders to order flow to BX to the benefit of all Options 7, Section 2(2). As discussed the Exchange, thereby contributing to market participants. As described above, above, the Exchange intended to follow robust levels of liquidity to the benefit the proposed fee is lower than the the Opening Cross pricing on NOM such of all market participants. current fee assessed to LMMs when that BX would similarly assess a Fee to In terms of inter-market competition, trading against a Customer. The Remove Liquidity on all market the Exchange notes that it operates in a Exchange believes that the lower fee participants, other than a Customer, highly competitive market in which will incentivize LMMs to increase their during the Opening Cross. The market participants can readily favor liquidity provision on the Exchange, Exchange believes that the proposed competing venues if they deem fee which will ultimately benefit all market correction to add BX Options Market levels at a particular venue to be participants through the quality of order Makers will help ensure that the Pricing excessive, or rebate opportunities interaction. Schedule more accurately represents the available at other venues to be more The Exchange further believes that the rates assessed currently during the favorable. In such an environment, the proposed differentiation between LMMs Opening Cross and in the manner as Exchange must continually adjust its and other market participants through originally intended by the 2012 Filing, fees to remain competitive with other the lower $0.38 per contract Fee to Add thereby avoiding any potential options exchanges. Because competitors Liquidity recognizes the differing confusion among market participants. are free to modify their own fees in contributions made to the liquidity and The Exchange again notes that this response, and because market trading environment on the Exchange by proposed change is merely corrective in participants may readily adjust their LMMs through their quoting obligations nature and does not change any rates order routing practices, the Exchange and their commitment of capital, unlike that are currently applied during the does not believe that its proposed fee other market participants. In addition, Opening Cross. change will impose any burden on LMMs are subject to heightened quoting The proposed changes to add LMMs intermarket competition. Furthermore, obligations compared to BX Options to the Opening Cross pricing provisions as noted above, competing options 22 Market Makers. Accordingly, the likewise do not change any rates that are exchanges offer similar pricing Exchange believes that offering a lower currently applied to market participants structures to that of the Exchange, during the Opening Cross. LMMs will including schedules of rebates and fees 21 See Options 2, Section 4(j) (setting forth the continue to be assessed the same rates that differentiate between LMMs and 90% or higher quoting requirements for LMMs) and 23 Section 5(d) (setting forth the 60% or higher as BX Options Market Makers, including other market participants. quoting obligations for BX Options Market Makers). during the Opening Cross (i.e., the Fee 22 Id. to Remove Liquidity). Lastly, the 23 See supra note 20.

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C. Self-Regulatory Organization’s those that may be withheld from the the Silexx trading platform (‘‘Silexx’’ or Statement on Comments on the public in accordance with the the ‘‘platform’’) Fees Schedule. The text Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be of the proposed rule change is provided Members, Participants, or Others available for website viewing and in Exhibit 5. No written comments were either printing in the Commission’s Public The text of the proposed rule change solicited or received. Reference Room, 100 F Street NE, is also available on the Exchange’s Washington, DC 20549, on official website (http://www.cboe.com/ III. Date of Effectiveness of the business days between the hours of AboutCBOE/ Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the CBOELegalRegulatoryHome.aspx), at Commission Action filing also will be available for the Exchange’s Office of the Secretary, The foregoing rule change has become inspection and copying at the principal and at the Commission’s Public effective pursuant to Section office of the Exchange. All comments Reference Room. 19(b)(3)(A)(ii) of the Act.24 received will be posted without change. II. Self-Regulatory Organization’s At any time within 60 days of the Persons submitting comments are Statement of the Purpose of, and filing of the proposed rule change, the cautioned that we do not redact or edit Commission summarily may personal identifying information from Statutory Basis for, the Proposed Rule temporarily suspend such rule change if comment submissions. You should Change it appears to the Commission that such submit only information that you wish In its filing with the Commission, the action is: (i) Necessary or appropriate in to make available publicly. All Exchange included statements the public interest; (ii) for the protection submissions should refer to File concerning the purpose of and basis for of investors; or (iii) otherwise in Number SR–BX–2021–001 and should the proposed rule change and discussed furtherance of the purposes of the Act. be submitted on or before February 12, any comments it received on the If the Commission takes such action, the 2021. proposed rule change. The text of these Commission shall institute proceedings For the Commission, by the Division of statements may be examined at the to determine whether the proposed rule Trading and Markets, pursuant to delegated places specified in Item IV below. The should be approved or disapproved. authority.25 Exchange has prepared summaries, set IV. Solicitation of Comments J. Matthew DeLesDernier, forth in sections A, B, and C below, of Assistant Secretary. the most significant aspects of such Interested persons are invited to [FR Doc. 2021–01403 Filed 1–21–21; 8:45 am] statements. submit written data, views, and arguments concerning the foregoing, BILLING CODE 8011–01–P A. Self-Regulatory Organization’s including whether the proposed rule Statement of the Purpose of, and Statutory Basis for, the Proposed Rule change is consistent with the Act. SECURITIES AND EXCHANGE Change Comments may be submitted by any of COMMISSION the following methods: 1. Purpose [Release No. 34–90929; File No. SR–CBOE– Electronic Comments 2021–002] The Exchange proposes to adopt • Use the Commission’s internet ‘‘drop copy’’ and order routing fees for comment form (http://www.sec.gov/ Self-Regulatory Organizations; Cboe a recently adopted Silexx platform rules/sro.shtml); or Exchange, Inc.; Notice of Filing and (‘‘Cboe Silexx’’), effective January 4, • Send an email to rule-comments@ Immediate Effectiveness of a Proposed 2021. sec.gov. Please include File Number SR– Rule Change Relating To Amend the By way of background, the Silexx BX–2021–001 on the subject line. Silexx Trading Platform Fees Schedule platform consists of a ‘‘front-end’’ order entry and management trading platform Paper Comments January 14, 2021. Pursuant to Section 19(b)(1) of the (also referred to as the ‘‘Silexx • Send paper comments in triplicate Securities Exchange Act of 1934 (the terminal’’) for listed stocks and options to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 that supports both simple and complex Commission, 100 F Street, NE, 3 notice is hereby given that on January 4, orders, and a ‘‘back-end’’ platform Washington, DC 20549–1090. 2021, Cboe Exchange, Inc. (the which provides a connection to the All submissions should refer to File ‘‘Exchange’’ or ‘‘Cboe Options’’) filed infrastructure network. From the Silexx Number SR–BX–2021–001. This file with the Securities and Exchange platform (i.e., the collective front-end number should be included on the Commission (the ‘‘Commission’’) the and back-end platform), a Silexx user subject line if email is used. To help the proposed rule change as described in has the capability to send option orders Commission process and review your Items I, II, and III below, which Items to U.S. options exchanges, send stock comments more efficiently, please use have been prepared by the Exchange. orders to U.S. stock exchanges (and only one method. The Commission will The Commission is publishing this other trading centers), input parameters post all comments on the Commission’s notice to solicit comments on the to control the size, timing, and other internet website (http://www.sec.gov/ proposed rule change from interested variables of their trades, and also rules/sro.shtml). Copies of the persons. includes access to real-time options and submission, all subsequent stock market data, as well as access to amendments, all written statements I. Self-Regulatory Organization’s certain historical data. The Silexx with respect to the proposed rule Statement of the Terms of Substance of platform is designed so that a user may change that are filed with the the Proposed Rule Change enter orders into the platform to send to Commission, and all written Cboe Exchange, Inc. (the ‘‘Exchange’’ communications relating to the or ‘‘Cboe Options’’) proposes to amend 3 The platform also permits users to submit orders proposed rule change between the for commodity futures, commodity options and other non-security products to be sent to designated Commission and any person, other than 25 17 CFR 200.30–3(a)(12). contract markets, futures commission merchants, 1 15 U.S.C. 78s(b)(1). introducing brokers or other applicable destinations 24 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. of the users’ choice.

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an executing broker (including Trading from a non-PULSe, non-Silexx into Cboe Silexx. Particularly, the Permit Holders (‘‘TPHs’’)) of its choice workstation for its customers’ drop Exchange proposes to adopt a fee for with connectivity to the platform, which copies. Instead, the Exchange is each TPH broker to whom a TPH broker will then send the orders to Cboe proposing to adopt a fee for accessing customer using a non-Cboe Silexx Options (if the broker is a TPH) or other the Silexx routing network to or from a workstation sends orders electronically U.S. exchanges (and trading centers) in non-Cboe Silexx workstation for order to a TPH broker’s Silexx workstation. accordance with the user’s instructions. routing or drop copies. The proposed The proposed fee is $500 per month for Historically, users could not directly fee is $500 per month payable by the each TPH broker with a Silexx route orders through any of the then- customer accessing the Silexx routing workstation to which the TPH customer current versions of Silexx to an network on a per connection basis, and sends orders. The proposed fee is exchange or trading center nor was the is similar to the existing PULSe Routing substantially similar to the existing platform integrated into or directly Network via Silexx fee that the Non-PULSe-to-PULSe Routing (sent by connected to Cboe Option’s System. In Exchange is proposing to eliminate, TPH customers) fee set forth in the Cboe 2019, the Exchange made available an with the exception that the proposed fee Fees Schedule with two differences. additional version of the Silexx references the Silexx routing network First, like the proposed fees discussed platform, Silexx FLEX, which supports rather than the PULSe Drop Copy above, the TPH broker may direct the the trading of FLEX Options and allows Network and eliminates the reference to applicable fee be assessed to its authorized Users with direct access to a non-PULSe workstation for order customer rather than itself. However, the Exchange.4 Most recently, the routing or drop copies. Further, the the TPH broker will be ultimately Exchange made a new version of the proposed fee is equal to the existing responsible for the fee. Second, the Silexx platform available, Cboe Silexx, PULSe Routing Network via Silexx fee Exchange is not proposing to adopt the which supports the trading of non-FLEX (i.e., $500 per month per customer provision that TPH customers who Options and allows authorized Users connection). request FIX order routing into Cboe with direct access to the Exchange.5 The Second, the Exchange proposes to Silexx will also receive drop copies Silexx front-end and back-end platforms adopt a fee for drop copies received by from its TPH brokers and must pay the are a software application that is a TPH customer via Cboe Silexx. The monthly drop copy fee in addition to installed locally on a user’s desktop. proposed fee is $425 per month payable the in-bound addition fee. by the TPH customer receiving the drop Silexx grants users licenses to use the 2. Statutory Basis platform, and a firm or individual does copies, unless otherwise directed by the not need to be a TPH to license the TPH broker. Specifically, for each Cboe The Exchange believes the proposed platform. Use of any version of the Silexx-using TPH broker that provides a rule change is consistent with the Silexx platform is completely optional. TPH customer drop copies, such Securities Exchange Act of 1934 (the Currently, TPH or non-TPH market receiving TPH customer incurs a fee of ‘‘Act’’) and the rules and regulations participants may receive order fill $425 per month. The proposed fee is thereunder applicable to the Exchange messages 6 (i.e., drop copies) from their substantially similar to a fee charged to and, in particular, the requirements of Silexx Brokers via the PULSe drop copy a PULSe-using TPH broker that provides Section 6(b) of the Act.7 Specifically, network. However, on January 4, 2021, a TPH customer drop copies via a the Exchange believes the proposed rule the Exchange plans to migrate such PULSe workstation. The only difference change is consistent with the Section functionality to Cboe Silexx in between the proposed fee and the 6(b)(5) 8 requirements that the rules of conjunction with the planned existing fee pertaining to PULSe users is an exchange be designed to prevent decommission of the PULSe Trader that the TPH broker may direct that the fraudulent and manipulative acts and Workstation. At that time, TPH or non- fee be assessed to itself rather than the practices, to promote just and equitable TPH market participants may instead TPH customer receiving the drop principles of trade, to foster cooperation receive drop copies via the Cboe Silexx copies. However, the TPH customer will and coordination with persons engaged Platform. As a result, the Exchange be ultimately responsible for the fee. in regulating, clearing, settling, proposes to adopt certain drop copy fees Third, the Exchange proposes to processing information with respect to, from the Cboe Options Fees Schedule to adopt a drop copy payable by the TPH and facilitating transactions in the Silexx Fees Schedule with certain broker sending the drop copies to its securities, to remove impediments to modifications. Additionally, the non-TPH customers, unless otherwise and perfect the mechanism of a free and Exchange is proposing to adopt a fee for directed by the TPH broker. open market and a national market order routing via Financial Information Specifically, for each non-TPH Cboe system, and, in general, to protect eXchange (‘‘FIX’’) into Cboe Silexx, and Silexx-using customer for which a TPH investors and the public interest. to replace the PULSe Routing Network broker provides drop copies, the TPH Additionally, the Exchange believes the via Silexx fee with a Cboe Silexx broker will incur a fee of $0.02/contract proposed rule change is consistent with Routing Network fee. with a fee cap of $400 per month for the Section 6(b)(5) 9 requirement that The Exchange proposes to eliminate each non-TPH customer to which the the rules of an exchange not be designed the PULSe Routing Network via Silexx TPH broker sends drop copies. The to permit unfair discrimination between fee from the Silexx Fees Schedule, proposed fee is substantially similar to customers, issuers, brokers, or dealers. which sets forth a fee for trading firms the fee applied to drop copies received Additionally, the Exchange also believes accessing the PULSe drop copy network by a non-TPH customer via a PULSe the proposed rule change is consistent workstation with one difference. Like with Section 6(b)(4) of the Act,10 which 4 See Securities Exchange Act Release No. 87028 the proposed fee for drop copies requires that Exchange rules provide for (September 19, 2019) 84 FR 50529 (September 25, received by a TPH customer, the TPH the equitable allocation of reasonable 2019) (SR–CBOE–2019–061). broker may direct that the applicable fee dues, fees, and other charges among its 5 See Securities Exchange Act Release No. 88741 be assessed to its customer rather than (April 24, 2020) 85 FR 24045 (April 30, 2020) (SR– itself. However, the TPH broker will be 7 CBOE–2020–040). 15 U.S.C. 78f(b). 6 These fill messages allow customers to update ultimately responsible for the fee. 8 15 U.S.C. 78f(b)(5). positions, risk calculations, and streamline back- Lastly, the Exchange proposes to 9 Id. office functions. adopt a fee for orders routed via FIX 10 15 U.S.C. 78f(b)(4).

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TPHs and other persons using its Exchange and other exchanges; the C. Self-Regulatory Organization’s facilities. platform is merely an alternative that Statement on Comments on the The Exchange believes that its will be offered by the Exchange. The Proposed Rule Change Received From proposed fees are reasonable and Exchange believes the proposed fees are Members, Participants, or Others appropriate as they are substantially equitable and not unfairly The Exchange neither solicited nor similar with fees set forth in the Cboe discriminatory because they apply to all received comments on the proposed Exchange Fees Schedule applicable to market participants uniformly. rule change. the PULSe workstation, which is a substantially similar order entry and B. Self-Regulatory Organization’s III. Date of Effectiveness of the management system to Silexx.11 Despite Statement on Burden on Competition Proposed Rule Change and Timing for certain differences in the proposed fees Commission Action The Exchange does not believe that from the existing fees applicable to The foregoing rule change has become PULSe workstations, the Exchange the proposed rule change will impose effective pursuant to Section 19(b)(3)(A) believes that the proposed fees are any burden on competition that is not of the Act 12 and paragraph (f) of Rule reasonable for the following reasons. necessary or appropriate in furtherance 19b–4 13 thereunder. At any time within First, the proposed Cboe Silexx Routing of the purposes of the Act. The 60 days of the filing of the proposed rule Network fee would provide trading proposed change will not impose any change, the Commission summarily may firms the ability to access the Cboe burden on intramarket competition that temporarily suspend such rule change if Silexx Routing Network to or from a is not necessary or appropriate in it appears to the Commission that such non-Cboe Silexx workstation for not furtherance of the purposes of the Act action is necessary or appropriate in the only drop copies, but also for order because it relates to optional services on public interest, for the protection of routing. Further, the proposed fee is an optional platform. The proposed fees investors, or otherwise in furtherance of equal to the existing PULSe Routing will apply to similarly situated the purposes of the Act. If the Network via Silexx fee despite that it participants uniformly. Also as Commission takes such action, the provides order routing functionality in discussed, the use of the platform and Commission will institute proceedings addition to drop copies. Second, while the drop copy services will be to determine whether the proposed rule the proposed Drop Copy (received by completely voluntary and market change should be approved or TPH customer from Cboe Silexx) and disapproved. Drop Copy (received by non-TPH participants will continue to have the customer) from Cboe Silexx fees provide flexibility to use any order entry and IV. Solicitation of Comments that the TPH broker may direct the management tool that is proprietary or Interested persons are invited to applicable fee be payable by itself or its from third-party vendors, and/or market submit written data, views, and customer, as applicable, the proposal participants may choose any executing arguments concerning the foregoing, may simplify and streamline billing for brokers to enter their orders and receive including whether the proposed rule TPH brokers and their customers. drop copies. Cboe Silexx is not an change is consistent with the Act. Lastly, the proposed FIX order routing exclusive means of order routing or to Comments may be submitted by any of into Cboe Silexx fee differs from the receive drop copies, and if market the following methods: Non-PULSe-to-PULSe Routing (sent by participants believe that other products, TPH customers) fee currently provided vendors, front-end builds, etc. available Electronic Comments in the Cboe Options Fee Schedule as it in the marketplace are more beneficial • Use the Commission’s internet does not provide that TPH customers than the Cboe Silexx platform, they may comment form (http://www.sec.gov/ requesting such order routing simply use those products instead. Use rules/sro.shtml); or • functionality will receive drop copies of such functionality is completely Send an email to rule-comments@ from its TPH brokers and must pay the voluntary. sec.gov. Please include File Number SR– monthly drop copy fee in addition to CBOE–2021–002 on the subject line. The Exchange does not believe that the in-bound addition fee. The Paper Comments Exchange believes it is reasonable not to the proposed rule changes will impose • include such language as it is no longer any burden on intermarket competition Send paper comments in triplicate applicable. that is not necessary or appropriate in to Secretary, Securities and Exchange Additionally, as discussed, use of furtherance of the purposes of the Act Commission, 100 F Street NE, drop copy functionality and FIX order because the proposed changes are Washington, DC 20549–1090. routing into Cboe Silexx is discretionary substantially similar to fees applicable All submissions should refer to File and not compulsory. Indeed, Users can to the PULSe workstation, which is a Number SR–CBOE–2021–002. This file choose to route orders, including to substantially similar order entry and number should be included on the Cboe Options, and receive drop copies management system and which is subject line if email is used. To help the without the use of the platform. The migrating to Cboe Silexx in conjunction Commission process and review your Exchange is making the platform with the planned decommission of the comments more efficiently, please use available as a convenience to market PULSe Trader Workstation on January 4, only one method. The Commission will participants, who will continue to have 2021. To the extent that the proposed post all comments on the Commission’s the option to use any order entry and changes make Cboe Options a more internet website (http://www.sec.gov/ management system available in the attractive marketplace for market rules/sro.shtml). Copies of the marketplace to send orders to the participants at other exchanges, such submission, all subsequent amendments, all written statements market participants are welcome to 11 See Cboe Options Fees Schedule, which with respect to the proposed rule become Cboe Options market provides for a PULSe workstation drop copy change that are filed with the participants. (received by TPH customer) fee of $425 per month, Commission, and all written a drop copy (received by non-TPH customer) fee of $0.02 per contract capped at $400 per month, and a Non-PULSe-to-PULSe Routing (sent by TPH 12 15 U.S.C. 78s(b)(3)(A). customers) fee of $500 per month. 13 17 CFR 240.19b–4(f).

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communications relating to the 01’’) of 17 CFR 210.01 et seq. • Amend ET § 101.02 of the American proposed rule change between the (‘‘Regulation S–X’’) 3 (collectively, the Institute of Certified Public Accountants Commission and any person, other than ‘‘Proposed Rules’’).4 The Proposed (‘‘AICPA’’) Code of Professional those that may be withheld from the Rules were published for comment in Conduct, Interpretation of Rule 101, as public in accordance with the the Federal Register on November 27, in existence on April 16, 2003 and provisions of 5 U.S.C. 552, will be 2020.5 We received several comment incorporated in the Board’s auditing and available for website viewing and letters in response to the notice.6 This related professional practice. printing in the Commission’s Public order approves the Proposed Rules, • Delete ET § 101.07 of the AICPA’s Reference Room, 100 F Street NE, which we find to be consistent with the Code of Professional Conduct, Loans Washington, DC 20549 on official requirements of the Sarbanes-Oxley Act from financial institution clients and business days between the hours of and the securities laws and necessary or related terminology, as in existence on 10:00 a.m. and 3:00 p.m. Copies of the appropriate in the public interest or for April 16, 2003 and incorporated in the filing also will be available for the protection of investors. Board’s auditing and related inspection and copying at the principal professional practice standards by II. Description of the Proposed Rules office of the Exchange. All comments PCAOB Rule 3500T. received will be posted without change. On November 19, 2020, the Board • Delete ET §§ 191.150–.151, ET Persons submitting comments are adopted amendments to the PCAOB’s §§ 191.182–.183, ET §§ 191.196–.197, cautioned that we do not redact or edit interim independence standards and and ET §§ 191.220–.222, of the AICPA’s personal identifying information from PCAOB rules to align with amendments Code of Professional Conduct, as in comment submissions. You should by the SEC to Rule 2–01 of Regulation existence on April 16, 2003 and submit only information that you wish S–X.7 The Proposed Rules are intended incorporated in the Board’s auditing and to make available publicly. All to avoid differences and duplicative related professional practice standards submissions should refer to File requirements. To that end, the Board by PCAOB Rule 3500T, which are four Number SR–CBOE–2021–002 and adopted targeted amendments to its Ethics Rulings under Rule 101 that also should be submitted on or before interim independence standards address lending arrangements and are February 12, 2021. applicable to lending arrangements part of the Board’s interim For the Commission, by the Division of between auditors and audit clients. In independence standards. Trading and Markets, pursuant to delegated addition, the Board adopted targeted • Amend PCAOB Rules 3501(a)(ii), authority.14 amendments to align certain terms (a)(iii), and (i)(ii). J. Matthew DeLesDernier, defined in PCAOB Rule 3501 with the B. Applicability and Effective Date Assistant Secretary. Commission’s recent amendments to its [FR Doc. 2021–01285 Filed 1–21–21; 8:45 am] definitions of those terms in 17 CFR The Proposed Rules will be effective BILLING CODE 8011–01–P 210.2–01(f) (‘‘Rule 2–01(f)’’). June 9, 2021, 180 days after the date of the publication of the Commission’s A. Changes to PCAOB Standards October 16, 2020 amendments to Rule SECURITIES AND EXCHANGE The Proposed Rules will make the 2–01 in the Federal Register. The June COMMISSION following changes: 9, 2021 effective date is aligned with the effective date of the Commission’s [Release No. 34–90930; File No. PCAOB– 8 3 amendments to Rule 2–01. Auditors 2020–01] See Qualifications of Accountants, Release No. 33–10876 (Oct. 16, 2020) (‘‘2020 Adopting may elect to comply before the effective Public Company Accounting Oversight Release’’). date at any point after SEC approval of 4 See Amendments to PCAOB Interim the Board’s amendments, provided that Board; Order Granting Approval of Independence Standards and Board Rules to Align Amendments to PCAOB Interim with Amendments to Rule 2–01of Regulation S–X, the final amendments are applied in Independence Standards and PCAOB PCAOB Release No. 2020–03 (Nov. 19, 2020) their entirety. The PCAOB has Rules to Align with Amendments to (‘‘PCAOB Adopting Release’’), available at https:// recommended that the Proposed Rules pcaobus.org/Rulemaking/Docket047/2020-003- Rule 2–01 of Regulation S–X to apply to audits of emerging growth Independence-final-rule.pdf. companies (‘‘EGCs’’),9 as discussed in 5 See Public Company Accounting Oversight January 14, 2021. Board; Notice of Filing of Proposed Rules on Section IV below, and audits of brokers I. Introduction Amendments to PCAOB Interim Independence and dealers under 17 CFR 240.17a–5 Standards and PCAOB Rules to Align with (‘‘Exchange Act Rule 17a–5’’). On November 20, 2020, the Public Amendments to Rule 2–01 of Regulation S–X, Company Accounting Oversight Board Release No. 34–90473 (Nov. 20, 2020) [85 FR 76131 III. Comment Letters (the ‘‘Board’’ or the ‘‘PCAOB’’) filed (Nov. 27, 2020)]. 6 See, e.g., comment letters from the Council of The comment period on the Proposed with the Securities and Exchange Institutional Investors, December 3, 2020 (‘‘CII Rules ended on December 18, 2020. We Commission (the ‘‘Commission’’), Letter’’); Right Advisory LLC, December 7, 2020 received several comment letters pursuant to Section 107(b) 1 of the (‘‘RA Letter’’); Deloitte LLP, December 11, 2020 representing investor organizations, Sarbanes-Oxley Act of 2002 (the (‘‘Deloitte Letter’’); PricewaterhouseCoopers LLP, December 16, 2020 (‘‘PwC Letter’’); Colorado PERA, advisory firms, accounting firms, trade ‘‘Sarbanes-Oxley Act’’) and Section December 16, 2020 (‘‘COPERA’’); International organizations, and other interested 19(b) 2 of the Securities Exchange Act of Corporate Governance Network, December 16, 2020 parties. Some commenters were 1934 (the ‘‘Exchange Act’’), a proposal (‘‘ICGN Letter’’); Consumer Federation of America supportive 10 of the Proposed Rules to adopt amendments to the PCAOB’s and Certain Other Groups and Individuals, December 17, 2020 (‘‘CFA, et al. Letter’’); Ernst & interim independence standards and Young LLP, December 18, 2020 (‘‘EY Letter’’); and 8 See 2020 Adopting Release at 81. PCAOB rules to align with the the California Public Employees’ Retirement 9 The term ‘‘emerging growth company’’ is Commission’s recent adoption of System, December 18, 2020 (‘‘CalPERS Letter’’). defined in Section 3(a)(80) of the Exchange Act (15 amendments 17 CFR 210.2–01 (‘‘Rule 2– Copies of the comment letters received on the U.S.C. 78c(a)(80)). See also Release No. 33–10332 Commission order noticing the Proposed Rules are Inflation Adjustments and Other Technical available on the Commission’s website at https:// Amendments Under Titles I and III of the JOBS Act 14 17 CFR 200.30–3(a)(12). www.sec.gov/comments/pcaob-2020-01/ (Mar. 31, 2017), 82 FR 17545 (Apr. 12, 2017). 1 15 U.S.C. 7217(b). pcaob202001.htm. 10 See RA Letter; Deloitte Letter; PwC Letter; and 2 15 U.S.C. 78s(b). 7 See supra note 4. EY Letter.

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while other commenters asked the audit client.18 One commenter 19 anticipates the amendments will reduce Commission to consider certain changes suggested a public certification of the compliance costs for audit firms and to auditor independence unrelated to design and operating effectiveness of their clients. Similarly, under the the Proposed Rules 11 or reiterated controls over audit quality and amended rules, auditors and their comments addressed by the independence by executives of the audit clients will be able to focus their Commission in the 2020 Adopting firm.20 The commenters 21 who resources and attention on monitoring Release.12 expressed concerns about the PCAOB’s those relationships and services that The Sarbanes-Oxley Act requires us to process to adopt the Proposed Rules at pose the greatest risk to auditor determine whether the Proposed Rules this time requested the PCAOB to use its independence, reducing overall are consistent with the requirements of independent authority to expand the compliance burdens without the Sarbanes-Oxley Act and the scope of the rulemaking beyond significantly diminishing investor securities laws, or are necessary or conforming amendments to the protections. 23 The Proposed Rules, appropriate in the public interest or for Commission’s 2019 and 2020 Adopting which conform the PCAOB’s the protection of investors.13 In making Releases. independence requirements to the 2020 this determination, we have considered After considering the public Adopting Release, will allow firms, the comments we received. The comments and recommendations, we audit clients and investors to take comments received on the Proposed are approving the Proposed Rules. The advantage fully of the anticipated Rules did not raise new issues for the comments the Commission has received benefits of the amendments to Rule 2– Commission to address. The with respect to the Proposed Rules are 01. commenters in support of the generally similar to the comments the IV. Effect on Emerging Growth Commission’s approval of the Proposed Commission considered when Companies Rules reiterated their prior support for approving the 2020 Adopting Release the 2020 Adopting Release and noted and the Auditor Independence with In the PCAOB Adopting Release, the the benefits of eliminating differences Respect to Certain Loans or Debtor- Board recommended that the between the Commission’s and the Creditor Relationships Release (the Commission determine that the PCAOB’s auditor independence rules ‘‘2019 Adopting Release’’).22 As the Proposed Rules apply to audits of while focusing on those relationships Commission noted in the 2020 Adopting EGCs.24 Section 103(a)(3)(C) of the and services that are more likely to Release, the Commission expects the Sarbanes-Oxley Act, as amended by threaten an auditor’s objectivity and amendments to Rule 2–01 to more Section 104 of the Jumpstart Our impartiality.14 Commenters opposing effectively focus the independence Business Startups Act of 2012, requires the Commission’s approval of the analysis on those relationships or that any rules of the Board ‘‘requiring Proposed Rules reiterated certain services that are more likely to pose mandatory audit firm rotation or a concerns regarding amendments in the threats to an auditor’s objectivity and supplement to the auditor’s report in Commission’s 2020 Adopting Release or impartiality. After considering public which the auditor would be required to expressed concerns about the PCAOB’s comments, the Commission noted that provide additional information about process to adopt the Proposed Rules at the amendments to Rule 2–01 would the audit and the financial statements of this time. For example, some benefit audit firms, audit clients, and the issuer (auditor discussion and commenters 15 expressed concerns investors in several ways. First, by analysis) shall not apply to an audit of about the ‘‘Affiliate of the Audit Client’’ revising the rules to emphasize those an [EGC].’’ The provisions of the 16 definition while one commenter relationships and services that are more Proposed Rules do not fall into these broadly opposed many of the specific likely to threaten auditor objectivity and categories. amendments within the Commission’s impartiality, the Commission Section 103(a)(3)(C) further provides 2020 Adopting Release. Some that ‘‘[a]ny additional rules’’ adopted by 17 commenters also expressed the desire 18 In considering a rule adopted by the PCAOB the PCAOB after April 5, 2012, do not for a rule that would specify the under the Sarbanes-Oxley Act, the Commission may apply to audits of EGCs ‘‘unless the documentation that auditors should only take action to approve or disapprove any such Commission determines that the prepare and maintain when additional rule. As such, any recommendation to alter the application of such additional services are provided to an affiliate of an Proposed Rules is outside the scope of this Order. 19 See supra note 11. requirements is necessary or appropriate 20 See supra note 18. in the public interest, after considering 11 See RA Letter. 21 See CFA et al Letter, COPERA Letter; ICGN the protection of investors and whether 12 See CII Letter; CFA, et al. Letter. Letter; and CalPERS Letter. One commenter the action will promote efficiency, 13 See Section 107(b)(3) of the Sarbanes-Oxley specifically expressed concerns regarding the competition, and capital formation.’’ Act. The Sarbanes-Oxley Act also specifies that the PCAOB relying on the Commission’s deliberation in provisions of Section 19(b) of the Exchange Act adopting the 2020 Adopting Release. See CalPERS The Proposed Rules fall within this shall govern the proposed rules of the Board. See Letter. In the PCAOB Adopting Release, the Board category. Having considered those Section 107(b)(4) of the Sarbanes-Oxley Act. noted its consideration of the Commission’s statutory factors, we find that applying Section 19 of the Exchange Act pertains to the rulemaking record and stated that ‘‘[it] believes that the Proposed Rules to the audits of registration, responsibilities, and oversight of self- this process—structured by the Commission to regulatory organizations. Under the procedures satisfy the requirements of the Administrative EGCs is necessary or appropriate in the prescribed by the Sarbanes-Oxley Act and Section Procedure Act—is at least as robust as the Board’s public interest. 19(b)(2) of the Exchange Act, the Commission must process would have been had the PCAOB To inform consideration of the either approve or disapprove, or institute considered amendments to the Board’s application of auditing standards to proceedings to determine whether the proposed independence requirements without the benefit of rules of the Board should be disapproved; and these the SEC’s analysis.’’ See PCAOB Adopting Release, audits of EGCs, the PCAOB staff procedures do not expressly permit the Commission at 12. The Board further noted that it did not to amend or supplement the proposed rules of the perceive ‘‘any reason or compelling basis in the 23 See Release No. 33–10648 (June 18, 2019), [84 Board. [Commission’s] rulemaking record’’ to diverge from FR 32040 (July 5, 2019)]. Some commenters 14 See Deloitte Letter; PwC Letter; EY Letter; RA the Commission’s stated goals and maintain explicitly cited to their prior comment letters Letter. disparate independence requirements. Id. Because submitted when the Commission considered the 15 See CII Letter; CFA et al. Letter; and CalPERS we agree with the Board’s conclusions on these 2020 Adopting release and the 2019 Adopting Letter. points, we are not persuaded by the commenter Release. See CII Letter, Deloitte Letter, PwC Letter, 16 See CFA et al. Letter. who objected to the PCAOB’s processes. and Consumer Federation of America, et al. Letter. 17 See supra note 15. 22 See Adopting Release, at 88–90. 24 See PCAOB Adopting Release at 27.

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published a white paper that provides interest or for the protection of Commission has received no comments general information about investors; and on the proposal. characteristics of EGCs (‘‘EGC White B. Separately, the Commission finds Section 19(b)(2) of the Act 4 provides Paper’’).25 In the EGC White Paper, the that the application of the Proposed that, within 45 days of the publication PCAOB staff stated that Rules to the audits of EGCs is necessary of notice of the filing of a proposed rule ‘‘[a]pproximately 96% of EGC filers or appropriate in the public interest, change, or within such longer period up were audited by accounting firms that after considering the protection of to 90 days as the Commission may also audit issuers that are not EGC investors and whether the action will designate if it finds such longer period filers.’’ 26 Additionally, the PCAOB promote efficiency, competition, and to be appropriate and publishes its Adopting Release discussed the capital formation. reasons for so finding or as to which the Commission’s intent to improve the It is therefore ordered, pursuant to self-regulatory organization consents, practical application of Rule 2–01 of Section 107 of the Sarbanes-Oxley Act the Commission shall either approve the Regulation S–X and reduce compliance and Section 19(b)(2) of the Exchange proposed rule change, disapprove the burdens, which may lead to increased Act, that the Proposed Rules (File proposed rule change, or institute competition among auditors and No.PCAOB–2020–01) be and hereby are proceedings to determine whether the facilitate capital formation. The Board approved. proposed rule change should be disapproved. The 45th day after noted that if the Proposed Rules were By the Commission. determined not to apply to the audits of publication of the notice for this EGCs, auditors would be required to Vanessa A. Countryman, proposed rule change is January 18, address the differing independence Secretary. 2021. The Commission is extending this requirements in their independence [FR Doc. 2021–01311 Filed 1–21–21; 8:45 am] 45-day time period. policies and procedures and in their BILLING CODE 8011–01–P The Commission finds that it is quality control systems as a result of the appropriate to designate a longer period differences between the Board and within which to take action on the Commission requirements, which SECURITIES AND EXCHANGE proposed rule change so that it has would create the potential for COMMISSION sufficient time to consider the proposed 27 rule change. Accordingly, the confusion. [Release No. 34–90926; File No. SR–CBOE– We agree with the Board’s analysis. 2020–106] Commission, pursuant to Section 5 We believe the Proposed Rules will 19(b)(2) of the Act, designates March 4, benefit EGCs at least as much as non- Self-Regulatory Organizations; Cboe 2021, as the date by which the EGCs, in part, because the Commission’s Exchange, Inc.; Notice of Designation Commission shall either approve or amendments to Rule 2–01 were meant of a Longer Period for Commission disapprove or institute proceedings to to more effectively focus the Action on a Proposed Rule Change, as determine whether to disapprove the independence analysis on those Modified by Amendment No. 1, To proposed rule change, as modified by relationships or services that are more Amend Its Rules Regarding the Amendment No. 1 (File Number SR– likely to pose threats to an auditor’s Minimum Increments for Electronic CBOE–2020–106). objectivity and impartiality. Bids and Offers and Exercise Prices of For the Commission, by the Division of As such, after considering the Certain FLEX Options and Clarify in Trading and Markets, pursuant to delegated authority.6 protection of investors and whether the the Rules How the System Ranks FLEX action will promote efficiency, Option Bids and Offers for Allocation J. Matthew DeLesDernier, competition, and capital formation, we Purposes Assistant Secretary. [FR Doc. 2021–01282 Filed 1–21–21; 8:45 am] believe there is a sufficient basis to January 14, 2021. BILLING CODE 8011–01–P determine that applying the Proposed On November 16, 2020, Cboe Rules to the audits of EGCs is necessary Exchange, Inc. filed with the Securities or appropriate in the public interest. and Exchange Commission SECURITIES AND EXCHANGE V. Conclusion (‘‘Commission’’), pursuant to Section COMMISSION 19(b)(1) of the Securities Exchange Act The Commission has carefully of 1934 (‘‘Act’’) 1 and Rule 19b–4 [Release No. 34–90919; File No. SR– reviewed and considered the Proposed thereunder,2 a proposed rule change to CboeBZX–2021–002] Rules, the information submitted amend its rules regarding the minimum Self-Regulatory Organizations; Cboe therewith by the PCAOB and the increments for electronic bids and offers comment letters received. In connection BZX Exchange, Inc.; Notice of Filing and exercise prices of certain FLEX and Immediate Effectiveness of a with the PCAOB’s filing and the options and clarify how the system Commission’s review, Proposed Rule Change To Amend the ranks FLEX option bids and offers for Fees Applicable to the BZX Top Feed A. The Commission finds that the allocation purposes. On November 30, Proposed Rules are consistent with the 2020, the Exchange filed Amendment January 14, 2021 requirements of the Sarbanes-Oxley Act No. 1 to the proposed rule change, Pursuant to Section 19(b)(1) of the and the securities laws and are which amended and replaced the Securities Exchange Act of 1934 (the necessary or appropriate in the public proposed rule change in its entirety. The ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Commission published notice of the notice is hereby given that on January 4, 25 See Characteristics of Emerging Growth proposed rule change, as modified by 2021, Cboe BZX Exchange, Inc. (the Companies and their Audit Firms as of November Amendment No. 1, in the Federal ‘‘Exchange’’ or ‘‘BZX’’) filed with the 15, 2019 (November 9, 2020), available at https:// 3 archive.pcaobus.org/EconomicAndRiskAnalysis/ Register on December 4, 2020. The ProjectsOther/Documents/White-Paper- 4 15 U.S.C. 78s(b)(2). Characteristics-Emerging-Growth-Companies- 1 15 U.S.C. 78s(b)(1). 5 Id. November-15-2019.pdf. 2 17 CFR 240.19b–4. 6 17 CFR 200.30–3(a)(31). 26 See EGC White Paper at 13. 3 See Securities Exchange Act Release No. 90536 1 15 U.S.C. 78s(b)(1). 27 See PCAOB Adopting Release at 27. (November 30, 2020), 85 FR 78381. 2 17 CFR 240.19b–4.

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Securities and Exchange Commission facilitate the provision of lower-cost disseminate their own top-of-book data, (the ‘‘Commission’’) the proposed rule market data to retail and other but no rule or regulation of the change as described in Items I, II, and investors.4 Commission requires market III, below, which Items have been participants to purchase top-of-book Market Background prepared by the Exchange. The data from an exchange.10 The BZX Top Commission is publishing this notice to The Commission has repeatedly Feed therefore competes with the SIP solicit comments on the proposed rule expressed its preference for competition and with similar products offered by change from interested persons. over regulatory intervention in other national securities exchanges that determining prices, products, and offer their own competing market data I. Self-Regulatory Organization’s services in the securities markets. In products. In fact, there are twelve Statement of the Terms of Substance of Regulation NMS, the Commission competing products offered by other the Proposed Rule Change highlighted the importance of market national securities exchanges today,11 Cboe BZX Exchange, Inc. (‘‘BZX’’ or forces in determining prices and SRO not counting products offered by the the ‘‘Exchange’’) is filing with the revenues, and also recognized that Exchange’s affiliates, and each of the Securities and Exchange Commission current regulation of the market system Exchange’s affiliated U.S. equities (the ‘‘Commission’’) a proposed rule ‘‘has been remarkably successful in exchanges also offers similar top-of- change to amend the fees applicable to promoting market competition in its book data. the BZX Top Feed. The text of the broader forms that are most important to proposed rule change is provided in investors and listed companies.’’ 5 As Fees for Internal Distribution of the BZX Exhibit 5. the Commission itself recognized, the Top Feed The text of the proposed rule change market for trading services in NMS Currently, the Exchange charges a is also available on the Exchange’s stocks has become ‘‘more fragmented modest fee of $500 per month for website (http://markets.cboe.com/us/ and competitive.’’ 6 internal distribution of BZX Top Feed equities/regulation/rule_filings/bzx/), at Equity trading is currently dispersed data,12 i.e., distribution within the the Exchange’s Office of the Secretary, across sixteen exchanges, including distributor’s own firm,13 and does not and at the Commission’s Public three new U.S. equities exchanges that charge any additional fees for internal Reference Room. launched trading in 2020, 32 alternative distribution based on the number of trading systems,7 and numerous broker- II. Self-Regulatory Organization’s Professional or Non-Professional Users dealer internalizers and wholesalers, all Statement of the Purpose of, and that receive access to this information. competing fiercely for order flow. Based Statutory Basis for, the Proposed Rule These internal distribution fees have on publicly-available information, no Change been in place, without change, since single U.S. equities exchange has more July 2013 when the Exchange first began In its filing with the Commission, the than 20% market share.8 In turn, the charging for access to the BZX Top Exchange included statements market for top-of-book data is highly Feed, which had previously been concerning the purpose of and basis for competitive as national securities available free of charge.14 In the time the proposed rule change and discussed exchanges compete both with each other since, the Exchange has made a number any comments it received on the and with the securities information of significant enhancements to its proposed rule change. The text of these processors (‘‘SIPs’’) to provide efficient, platform, including, among other things, statements may be examined at the reliable, and low-cost data to a wide a significant expansion of its listing places specified in Item IV below. The range of investors and market program for exchange-traded Exchange has prepared summaries, set participants. In fact, Regulation NMS products,15 that have resulted in forth in sections A, B, and C below, of requires all U.S. equities exchanges to improved trading opportunities for the most significant aspects of such provide their best bids and offers, and investors and, consequently, more statements. executed transactions, to the two valuable market data. A. Self-Regulatory Organization’s registered SIPs for dissemination to the As discussed, the Exchange now 9 Statement of the Purpose of, and public. Top-of-book data is therefore proposes to increase certain fees Statutory Basis for, the Proposed Rule widely available to investors today at a applicable to firms that consume this Change relatively modest cost. National securities exchanges may also 10 By contrast, Rule 603(c) of Regulation NMS (the 1. Purpose ‘‘Vendor Display Rule’’) effectively requires that SIP The purpose of the proposed rule 4 See e.g., BZX Schedule of Fees, Financial data or some other consolidated display be utilized in any context in which a trading or order-routing change is to amend the fees applicable Product Distribution Program. The Financial Product Distribution Program lowers the cost of decision can be implemented. to the BZX Top Feed, which is an distributing Derived Data based upon the 11 Competing top of book products include, uncompressed data feed that offers both Exchange’s top-of-book offerings, including Derived Nasdaq Basic, BX Basic, PSX Basic, NYSE BQT, top-of-book quotations and execution Data that is often used by retail investors. NYSE BBO/Trades, NYSE BQT, NYSE Arca BBO/ information based on equity orders 5 See Securities Exchange Act Release No. 51808 Trades, NYSE American BBO/Trades, NYSE Chicago BBO/Trades, IEX TOPS, MIAX PEARL 3 (June 9, 2005), 70 FR 37495, 37499 (June 29, 2005) entered into the System. Specifically, (S7–10–04) (Final Rule) (‘‘Regulation NMS Equities Top of Market Feed, and MEMX MEMOIR the Exchange proposes to: (1) Increase Adopting Release’’). Top. the fee for internal distribution of the 6 See Securities Exchange Act Release No. 51808, 12 See BZX Schedule of Fees, BZX Top, Internal BZX Top Feed; and (2) introduce 84 FR 5202, 5253 (February 20, 2019) (File No. S7– Distribution. Professional User fees for internal 05–18) (Transaction Fee Pilot for NMS Stocks Final 13 The Exchange’s fee schedule defines an Rule) (‘‘Transaction Fee Pilot’’). Internal Distributor of an Exchange Market Data Professional Users of the BZX Top Feed. 7 See FINRA ATS Transparency Data, available at product as a Distributor that receives the Exchange The current fees for external https://otctransparency.finra.org/otctransparency/ Market Data product and then distributes that data distribution of the BZX Top Feed will AtsData. A list of alternative trading systems to one or more Users within the Distributor’s own continue to apply, without change, registered with the Commission is available at entity. See BZX Schedule of Fees, Market Data Fees, including various incentive programs https://www.sec.gov/foia/docs/atslist.htm. Definitions. 8 See Cboe Global Markets, U.S. Equities Market 14 See Securities Exchange Act Release No. 69936 that the Exchange has adopted to Volume Summary, available at http:// (July 3, 2013), 78 FR 41483 (July 10, 2013) (SR– markets.cboe.com/us/equities/market_share/. BATS–2013–39). 3 See BZX Rule 11.22(d). 9 See Rule 602 of Regulation NMS. 15 See https://markets.cboe.com/services/listings/.

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data as internal distributors, i.e., firms securities.18 Finally, the proposed rule equity securities.’ ’’ 21 As discussed in that use BZX Top Feed data for internal change is also consistent with Rule 603 this filing, significant competitive forces purposes as opposed to firms that of Regulation NMS,19 which provides constrain the ability of the Exchange to distribute such data externally to its that any national securities exchange charge supra-competitive fees. customers. As proposed, the Exchange that distributes information with respect i. The BZX Top Feed Is an Optional would increase the monthly charge for to quotations for or transactions in an Market Data Product, and the Exchange internal distribution of BZX Top Feed NMS stock do so on terms that are not is Constrained in Its Pricing by data to $750 per month, which would unreasonably discriminatory. Significant Competitive Forces continue to be significantly cheaper The Exchange operates in a highly than similar products offered by the competitive environment. Indeed, with Subscribing to the BZX Top Feed is Exchange’s main competitors, including the launch of three new national entirely optional. The Exchange is not both other national securities exchanges securities exchanges that trade U.S. required to make the BZX Top Feed that offer top-of-book data products to equity securities last September, there available to any customers, nor is any their customers as well as the SIPs that are now sixteen registered U.S equities customer required to purchase the BZX provide similar ‘‘core data’’ to vendors exchanges, and with the exception of Top Feed. Unlike certain other data and subscribers pursuant to Regulation Long-Term Stock Exchange, Inc. products that firms may be required to NMS. In addition, the Exchange would (‘‘LTSE’’), which has determined to not purchase in order to fulfill regulatory 22 introduce Professional User fees for offer any proprietary market data feeds, obligations, e.g., the consolidated internal Professional Users of the BZX each of these exchanges offer associated quotation and last-sale information Top Feed. Those Professional User fees market data products to their customers, feeds offered by the SIPs, a customer’s will be the same as the modest fee either with or without a fee. The decision as to whether to purchase the currently charged for external national securities exchanges also BZX Top Feed is entirely discretionary, distribution of the BZX Top Feed, i.e., compete with the SIPs for market data and is based on that firms individual $4 per month for each Professional User. customers, as much of the information business needs. Generally, firms that There would continue to be no charge offered to market participants and choose to subscribe to the BZX Top associated with internal distribution to investors through the BZX Top Feed is Feed do so because they believe that it Non-Professional Users. Further, as similarly made available to market is a cost-effective alternative to core data discussed, the current fees for external participants and investors through the offered by the SIPs that provides distribution of the BZX Top Feed would SIPs, consolidated with data from each valuable information about the market for securities traded on the Exchange, continue to apply, without change, of the other fifteen exchanges. It is in particularly in cases where a including various incentive programs this robust and competitive market in consolidated display is not required that the Exchange has adopted to which the Exchange is proposing to pursuant to the Vendor Display Rule. facilitate the provision of lower-cost modestly increase its fees. Such firms are able to determine for market data to retail and other investors. The Commission has repeatedly themselves whether the BZX Top Feed As a result, the Exchange believes that expressed its preference for competition helps them to achieve their business the proposed fee changes would allow over regulatory intervention in goals, and if so, whether or not it is it to be appropriately compensated for determining prices, products, and attractively priced compared to other the value of its market data, particularly services in the securities markets. from professional financial services similar products. Further, with respect to market data, the Indeed, if the BZX Top Feed does not firms that use that data for internal decision of the United States Court of purposes, while simultaneously provide sufficient value to firms based Appeals for the District of Columbia on the uses those firms may have for it, ensuring that its data would continue to Circuit in NetCoalition v. SEC upheld be available to a wide range of market such firms may simply choose to the Commission’s reliance on the conduct their business operations in participants at a cost that facilitates existence of competitive market widespread availability of such data. ways that do not use the BZX Top Feed. mechanisms to evaluate the In fact, comparing the number of 2. Statutory Basis reasonableness and fairness of fees for internal distributors that currently The Exchange believes that the proprietary market data: ‘‘In fact, the subscribe to the BZX Top Feed, based proposed rule change is consistent with legislative history indicates that the on data compiled by the Exchange as of the objectives of Section 6 of the Act,16 Congress intended that the market November 2020, to the total number of in general, and furthers the objectives of system ‘evolve through the interplay of internal distributors that subscribe to Section 6(b)(4),17 in particular, as it is competitive forces as unnecessary core data offered by the CTA and UTP designed to provide for the equitable regulatory restrictions are removed’ and SIPs, as published on plan websites for allocation of reasonable dues, fees and that the SEC wield its regulatory power Q3 2020,23 less than 9.5% of internal other charges among its members and ‘in those situations where competition other recipients of Exchange data. In may not be sufficient,’ such as in the 21 Id. at 535. addition, the Exchange believes that the creation of a ‘consolidated transactional 22 The Exchange notes that broker-dealers are not 20 proposed rule change is consistent with reporting system.’ ’’ The court agreed required to purchase proprietary market data to with the Commission’s conclusion that comply with their best execution obligations. See In Section 11(A) of the Act as it supports the Matter of the Application of Securities Industry (i) fair competition among brokers and ‘‘Congress intended that ‘competitive and Financial Markets Association for Review of dealers, among exchange markets, and forces should dictate the services and Actions Taken by Self-Regulatory Organizations, between exchange markets and markets practices that constitute the U.S. Release Nos. 34–72182; AP–3–15350; AP–3–15351 national market system for trading (May 16, 2014). Similarly, there is no requirement other than exchange markets, and (ii) in Regulation NMS or any other rule that the availability to brokers, dealers, and proprietary data be utilized for order routing investors of information with respect to 18 15 U.S.C. 78k–1. decisions, and some broker-dealers and ATSs have 19 quotations for and transactions in See 17 CFR 242.603. chosen not to do so. 20 NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. 23 See CTA Quarterly Population Metrics (Q3 Cir. 2010) (‘‘NetCoalition I’’) (quoting H.R. Rep. No. 2020), available at https://www.ctaplan.com/ 16 15 U.S.C. 78f. 94–229 at 92 (1975), as reprinted in 1975 publicdocs/ctaplan/CTAPLAN_Population_ 17 15 U.S.C. 78f(b)(4). U.S.C.C.A.N. 323). Metrics_3Q2020.pdf; UTP Quarterly Population

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distributors that purchase U.S. equities top-of-book quotation information and market data. The existence of data choose to subscribe to the BZX Top last-sale information offered within the alternatives to the BZX Top Feed Feed. The BZX Top Feed therefore BZX Top Feed is also available on the ensures that the Exchange cannot set represents an insignificant proportion of SIP feeds, and for firms that do not unreasonable fees when vendors and the relevant market for such market require a consolidated display, as is subscribers can freely elect these data, and significantly more internal typically the case for the subscribers to alternatives or choose not to purchase a distributors choose not to purchase this the BZX Top Feed, similar top-of-book specific proprietary data product if the product than those that do. Given the information is available from a number attendant fees are not justified by the insignificant percentage of internal of competing U.S. equities exchanges.24 returns that any particular vendor or distributors that consume the BZX Top This include a number of large data recipient would achieve through Feed, it is clear that such firms can and established exchanges that charge for the purchase. do exercise their right to choose to access to such top-of-book data, as well ii. The Proposed Fees Are Reasonable purchase, or not purchase, this as certain smaller or new exchange Given the Value of the Data Provided to particular market data product. entrants that provide similar data Customers, and When Compared to Although the Exchange is not without charge, in many cases as a way required to make any data, including of attracting customers to their exchange Competing Market Data Products top-of-book data, available through its while they seek to grow market share. In The proposed fees are also reasonable proprietary market data platform, the this way, the BZX Top Feed, SIP data as they represent a modest increase for Exchange believes that making such products, and other top-of-book top-of-book data that has proven data available increases investor choice, products offered by a number of U.S. valuable for investors, particularly as and contributes to a fair and competitive equities exchanges, are all substitutes. the Exchange grows market share due to market. Specifically, making such data The availability of these substitute its innovative market model that has publicly available through proprietary products constrains the Exchange’s been successful in attracting retail limit data feeds allows investors to choose ability to charge supra-competitive orders, increasing the Exchange’s alternative, potentially less costly, prices as market participants can easily market share to over 7% consolidated market data based on their business obtain similar data from one of the U.S. equities volume.26 Specifically, the needs. While some market participants Exchange’s many competitors. In fact, BZX Top Feed offers competitively- that desire a consolidated display often the impact of competition on the market priced alternative to top-of-book data choose the SIP to satisfy their top-of- in which the BZX Top Feed is offered disseminated by SIPs, i.e., core data, for book data needs, and in some cases are to market participants and investors is firms that do not need or desire a effectively required to do so under the showcased by the Exchange’s other consolidated display covering all Vendor Display Rule, others may prefer recent fee changes related to this sixteen U.S. equities exchanges, or to purchase data directly from one or product, which involved the reduction similar data disseminated by other more national securities exchanges. For of fees to facilitate the Exchange’s national securities exchanges. It is example, a buy-side investor or fintech ability to compete for customers.25 purchased by a wide variety of market firm may choose to purchase the BZX Distributors can discontinue use of the participants and vendors, including data Top Feed, or a similar product from BZX Top Feed at any time and for any platforms, websites, fintech firms, buy- another exchange, in order to perform reason, including due to an assessment side investors, retail brokers, regional investment analysis, or to provide of the reasonableness of fees charged. banks, and securities firms inside and general information about the market for In setting the proposed fees for the outside of the U.S. that desire low cost, U.S. equity securities, respectively. In BZX Top Feed, the Exchange considered high quality, real-time U.S. equity either case the choice to purchase the the competitiveness of the market for market data. By providing lower cost BZX Top Feed would be based on the proprietary data and all of the access to U.S. equity market data, the firm’s determination of the value of the implications of that competition. The BZX Top Feed benefits a wide range of data offered by their chosen product Exchange believes that it has considered investors that participate in the national compared to the cost of acquiring this all relevant factors and has not market system. As discussed, the data instead of receiving similar data considered irrelevant factors in order to decision to purchase a particular market from other sources. The BZX Top Feed establish reasonable fees. Indeed, the data product from a particular exchange serves as a valuable reference for Exchange has no market power and is is largely based on two factors: (1) The investors that do not require a not in a position to charge unreasonable quality of the data, and (2) the price consolidated display that contains fees for its top-of-book data as there are charged for access to that data. The quotations for all sixteen U.S. equities a number of competing products in the Exchange believes that the BZX Top exchanges. Making alternative products market, including products that are Feed is competitive on both of these available to market participants currently offered free of charge by factors. ultimately ensures competition in the certain other exchanges that have First, the BZX Top Feed would marketplace, and constrains the ability determined not to charge for their remain competitively priced compared of exchanges to charge supra- to similar products offered by other competitive fees. 24 Although the Exchange does not have access to comparable U.S. equities exchanges and Further, in the event that a market the customer lists for other competing products, it core data offered by the SIPs. Although data customer views one exchange’s understands based on conversations with the BZX Top Feed is not offered free of subscribers to the BZX Top Feed that they typically top-of-book data product and/or fees as view exchange top-of-book products as substitutes charge like certain other competitor more or less attractive than a and do not generally look to purchase such data offerings, particularly those offered by competitor’s offerings they can and from more than one national securities exchange. newer U.S. equities exchanges that are often do switch between competing 25 See supra note 4. The Exchange also notes that seeking to grow market share, it is made while this proposed fee change involves an increase products. As discussed, much of the in fees, it is simultaneously filing another proposed available at a price that is significantly fee change to expand its Financial Products Metrics (Q3 2020), available at https:// Distribution Program and further reduce certain 26 See Cboe Global Markets, U.S. Equities Market www.utpplan.com/DOC/UTP_2020_Q3_Stats_with_ fees. See SR–CboeBZX–2021–003 (pending Volume Summary, available at http:// Processor_Stats.pdf. publication). markets.cboe.com/us/equities/market_share/.

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lower than the prices charged by the Nasdaq,32 and $8 per month total for allocate revenues to SROs that produce Exchange’s main competitors—i.e., both NYSE and Arca.33 Finally, the BZX the most useful data for investors.’’ 38 those with comparable market shares Top Feed also remains competitively iii. The Proposed Fees Are Equitable and data quality. Notably, even with the priced compared to core data provided and Not Unfairly Discriminatory as proposed fee increase, the BZX Top by the SIPs for firms, e.g., buy-side Internal Distributors Will Be Subject to Feed would remain significantly investors or fintech firms, that do not Uniform Pricing Based on Their Usage cheaper than similar products offered by need or desire a consolidated display of the Data New York Stock Exchange LLC covering all sixteen U.S. equities The Exchange believes the proposed (‘‘NYSE’’), NYSE Arca, Inc. (‘‘Arca’’), exchanges.34 and The Nasdaq Stock Market LLC fees for internal distribution of the BZX (‘‘Nasdaq’’) both in terms of the fees Second, the proposed fees are Top Feed will continue to be allocated charged for internal distribution and the reasonable given the value of the data fairly and equitably among subscribers, fees charge for each Professional User provided in the BZX Top Feed and used and are not unfairly discriminatory, as that is provided access to the feed. For by data recipients in their profit- the proposed fees will apply equally to example, NYSE charges a total of $3,000 generating activities. The BZX Top Feed all data recipients that choose to per month for internal distribution of provides top-of-book quotations and subscribe to the BZX Top Feed and their equivalent products, i.e., $1,500 transactions executed on the Exchange, distribute that data to internal per month for applicable top-of-book and provides a valuable window into subscribers. As proposed, all internal quotation information,27 and an the market for securities traded on a distributors of the BZX Top Feed will be additional $1,500 per month for market that accounts for about 4.5% of subject to the same internal distribution transaction information,28 both of which U.S. equity market volume today.35 As fee, regardless of the type of business that they operate, or the use they plan are included in the BZX Top Feed for discussed, the Exchange offers the BZX 29 to make of the data feed. Thus, all a single fee. Arca, which has a similar Top Feed in a competitive environment pricing model to NYSE, also charges a internal distributors would have access where firms may freely choose which to the BZX Top Feed on the same higher rate of $1,500 per month for market data products best suit their internal distribution of its equivalent equitable and non-discriminatory terms. business needs. Invariably, firms that products, separated into a $750 per Similarly, with the introduction of month charge for top-of-book quotation choose to purchase the BZX Top Feed Professional User fees, internal information and an additional $750 per instead of receiving one of the many free distributors of the BZX Top Feed will be 36 month charge for transaction products offered by other exchanges, subject to the same modest fees based information.30 Finally, Nasdaq charges including free products offered by an solely on the number of Professional its internal distributors a fee of $1,500 affiliate of the Exchange,37 have decided Users that each internal distributor has per month for Nasdaq Basic, which that the value of the BZX Top Feed is chosen to permission for access to this includes both top-of-book quotation greater than that offered by those other information. The Exchange does not information and transaction information products. Indeed, by incentivizing believe that it is inequitable, or unfairly for the same fee, similar to the market quality improvements through discriminatory, to charge a fee based on Exchange’s pricing model, but again at its Lead Market Maker (‘‘LMM’’) and the number of Professional Users within a higher cost.31 In each case, the internal other programs designed to enhance the a firm that have access to the BZX Top distribution charges associated with quality of its market, the Exchange is Feed as this ensures that firms with the obtaining comparable U.S. equities able to offer higher quality market data highest usage pay their equitable share market data from NYSE, Arca, and products to customers. In turn, investors for the data. Nasdaq runs at least double and up to may choose to rely on those products The Exchange also believes that it is four times as much as the proposed fee instead of other competitor offerings fair and equitable, and not unfairly discriminatory, to continue not to to be charged by the Exchange, meaning based on the value they provide in charge a fee for internal distribution to that the Exchange would continue to be relation to any additional cost offering its data at a price that is Non-Professional Users. The Exchange’s associated with obtaining that market attractive compared to the prices fee structure is generally designed to data from the Exchange. The Exchange charged by its competitors. Similarly, facilitate lower cost access to its market each of these exchanges charges a fee for therefore believes that its proposal is data by retail investors, either through each Professional User that is higher consistent with the principles enshrined substantially lower User fees for Non- than that proposed by the in Regulation NMS to ‘‘promote the Professional Users, or other incentive Exchange—i.e., $26 per month for wide availability of market data and to programs, such as the Small Retail Broker Distribution Program, which was 27 See NYSE PDP Market Data Pricing, Section 32 Nasdaq’s Professional User fee is divided into recently implemented to lower the cost 1.3, NYSE BBO. Nasdaq issues ($13), NYSE issues ($6.50), and other of the Exchange’s market data to small 28 issues ($6.50) for a total of $26 per month for each See NYSE PDP Market Data Pricing, Section broker-dealers that serve retail investors. 1.4, NYSE Trades. Professional User. See Nasdaq Equity Rules, Equity 29 See supra note 3 and accompanying text. The 7, Pricing Schedule, Section 147(b)(1). The Exchange does not anticipate any Exchange also offers a separate market data product, 33 NYSE and Arca’s fees are both broken down significant number of Non-Professional i.e., BZX Last Sale, that exclusively provides last into $4 per month for BBO information and an Users to receive BZX Top Feed Data sale information. See BZX Rule 13.8(d). However, additional $4 per month for Trades information. See through internal, i.e., within the all of the information contained in the BZX Last supra notes 27, 28, and 30. Sale Feed is also made available in the BZX Top 34 See CTA Schedule of Market Data Charges, distributor’s firm, as opposed to external Feed at no additional charge. available at https://www.ctaplan.com/pricing; UTP distribution, and in the event that 30 See NYSE PDP Market Data Pricing, Section Fee Schedule, available at https://utpplan.com/ certain firms may distribute data 3.3, NYSE Arca BBO; NYSE PDP Market Data DOC/Datapolicies.pdf. internally to Users that qualify as Non- Pricing, Section 3.4, NYSE Arca Trades. 35 See https://markets.cboe.com/us/equities/ _ Professional, providing such Users 31 See Nasdaq Equity Rules, Equity 7, Pricing market share/. Schedule, Section 147(c)(1). In addition, Nasdaq 36 See e.g., Investors Exchange Fee Schedule, access without any User fees would also charges distributors a $100 monthly Market Data fees. administrative fee. See Nasdaq Equity Rules, Equity 37 See e.g., Cboe EDGA Exchange, Inc., Fee 38 See Regulation NMS Adopting Release, supra 7, Pricing Schedule, Section 135. Schedule, EDGA Top. note 5, at 37503.

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facilitate the Exchange’s overall goals of other national securities exchanges as subject line if email is used. To help the facilitating access to its data by retail well as core data offered by the SIPs. Commission process and review your investors, which the Commission has Because market data customers can find comments more efficiently, please use continually found to be consistent with suitable substitute feeds, an exchange only one method. The Commission will the Exchange Act. that overprices its market data products post all comments on the Commission’s internet website (http://www.sec.gov/ B. Self-Regulatory Organization’s stands a high risk that users may rules/sro.shtml). Copies of the Statement on Burden on Competition substitute another product. These competitive pressures ensure that no submission, all subsequent The Exchange does not believe that one exchange’s market data fees can amendments, all written statements the proposed rule change would result impose an undue burden on with respect to the proposed rule in any burden on competition that is not competition, and the Exchange’s change that are filed with the necessary or appropriate in furtherance proposed fees do not do so here. Commission, and all written of the purposes of the Act. The communications relating to the Exchange operates in a highly C. Self-Regulatory Organization’s proposed rule change between the competitive environment, and its ability Statement on Comments on the Commission and any person, other than to price these data products is Proposed Rule Change Received From those that may be withheld from the constrained by: (i) Competition among Members, Participants, or Others public in accordance with the exchanges that offer similar data No written comments were either provisions of 5 U.S.C. 552, will be products to their customers; and (ii) the solicited or received. available for website viewing and existence of inexpensive real-time printing in the Commission’s Public III. Date of Effectiveness of the consolidated data disseminated by the Reference Room, 100 F Street NE, SIPs. Top-of-book data is broadly Proposed Rule Change and Timing for Washington, DC 20549, on official disseminated by both the SIPs and the Commission Action business days between the hours of sixteen U.S. equities exchanges. There The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the are therefore a number of alternative effective pursuant to Section 19(b)(3)(A) filing also will be available for products available to market of the Act 39 and paragraph (f) of Rule inspection and copying at the principal participants and investors, including 19b–4 40 thereunder. At any time within office of the Exchange. All comments products offered by certain competing 60 days of the filing of the proposed rule received will be posted without change. U.S. equities exchanges without charge. change, the Commission summarily may Persons submitting comments are In this competitive environment temporarily suspend such rule change if cautioned that we do not redact or edit potential subscribers are free to choose it appears to the Commission that such personal identifying information from which competing product to purchase to action is necessary or appropriate in the comment submissions. You should satisfy their need for market public interest, for the protection of submit only information that you wish information. Often, the choice comes investors, or otherwise in furtherance of to make available publicly. All down to price, as market data customers the purposes of the Act. If the submissions should refer to File look to purchase cheaper top-of-book Commission takes such action, the Number SR–CboeBZX–2021–002 and data products, and quality, as market Commission will institute proceedings should be submitted on or before participants seek to purchase data that to determine whether the proposed rule February 12, 2021. represents significant market liquidity. change should be approved or For the Commission, by the Division of Intramarket Competition. The disapproved. Trading and Markets, pursuant to delegated Exchange believes that the proposed authority.41 IV. Solicitation of Comments fees do not put any market participants J. Matthew DeLesDernier, at a relative disadvantage compared to Interested persons are invited to Assistant Secretary. other market participants. As discussed, submit written data, views, and [FR Doc. 2021–01279 Filed 1–21–21; 8:45 am] the proposed fees would apply to all arguments concerning the foregoing, BILLING CODE 8011–01–P internal distributors of the BZX Top including whether the proposed rule Feed on an equal and non- change is consistent with the Act. discriminatory basis. The Exchange Comments may be submitted by any of SECURITIES AND EXCHANGE therefore believes that the proposed fees the following methods: COMMISSION neither favor nor penalize one or more categories of market participants in a Electronic Comments [Release No. 34–90928; File No. SR–ICC– manner that would impose an undue • Use the Commission’s internet 2021–001] burden on competition. To the extent comment form (http://www.sec.gov/ Self-Regulatory Organizations; ICE that particular fees would apply to only rules/sro.shtml); or Clear Credit LLC; Notice of Filing and a subset of subscribers, e.g., Professional • Send an email to rule-comments@ Immediate Effectiveness of Proposed versus Non-Professional Users, those sec.gov. Please include File Number SR– Rule Change Relating to the ICC distinctions are not unfairly CboeBZX–2021–002 on the subject line. discriminatory and do not unfairly Clearing Rules Paper Comments burden one set of customers over January 14, 2021. • another. Send paper comments in triplicate Pursuant to Section 19(b)(1) of the Intermarket Competition. The to Secretary, Securities and Exchange Securities Exchange Act of 1934 Exchange believes that the proposed Commission, 100 F Street NE, (‘‘Act’’),1 and Rule 19b–4 thereunder,2 fees do not impose a burden on Washington, DC 20549–1090. notice is hereby given that on January 7, competition or on other SROs that is not All submissions should refer to File 2021, ICE Clear Credit LLC (‘‘ICC’’) filed necessary or appropriate in furtherance Number SR–CboeBZX–2021–002. This with the Securities and Exchange of the purposes of the Act. In setting the file number should be included on the proposed fees, the Exchange is 41 17 CFR 200.30–3(a)(12). constrained by the availability of 39 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). numerous substitute products offered by 40 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.

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Commission the proposed rule change about January 27, 2021 and subject to consistent with the prompt and accurate as described in Items I and II below, any regulatory review, approval, or clearance and settlement of securities which Items have been prepared other process. ICC will issue a circular transactions and derivative agreements, primarily by ICC. ICC filed the proposed notification, in advance of the operative contracts and transactions cleared by rule change pursuant to Section date. The proposed revisions are ICC, the safeguarding of securities and 19(b)(3)(A) of the Act 3 and Rule 19b– described in detail as follows. funds in the custody or control of ICC 4(f)(6) thereunder,4 such that the ICC proposes changes to Rule 406, or for which it is responsible, and the proposed rule change was immediately which sets out certain requirements protection of investors and the public effective upon filing with the with respect to client-related positions interest. The proposed rule change Commission. The Commission is of futures commission merchant would update Rule 406(b) to provide publishing this notice to solicit (‘‘FCM’’) and broker-dealer Participants. clarification to the existing requirement comments on the proposed rule change Under current Rule 406(b), a Participant and to update the terminology in a from interested persons. must require each Non-Participant Party manner that is consistent with amended to provide Non-Participant Collateral in I. Clearing Agency’s Statement of the CFTC Regulation 39.13(g)(8)(ii).13 an amount no less than ICC’s margin Specifically, the proposed revisions Terms of Substance of the Proposed requirement with respect to the relevant Rule Change clarify that the amount of Non- client-related position(s). The proposed Participant Collateral would be The principal purpose of the changes clarify that such amount would commensurate with the risk presented proposed rule change is to revise the be commensurate with the risk by such Non-Participant Party. The ICC Clearing Rules (the ‘‘Rules’’) 5 to presented by such Non-Participant proposed changes also remove general clarify an existing requirement of Party. The proposed changes also language whereby ICC may require Participants regarding the provision of remove general language whereby ICC additional margin with respect to Non- margin or collateral (‘‘Non-Participant may require additional margin with Participant Parties and, instead, direct Collateral’’) by clients (‘‘Non-Participant respect to Non-Participant Parties and, Participants to identify Non-Participant Parties’’). instead, direct Participants to identify Non-Participant Parties with heightened Parties with heightened risk profiles and II. Clearing Agency’s Statement of the risk profiles and collect margin from collect margin from them at a level Purpose of, and Statutory Basis for, the them at a level exceeding 100% of ICC’s exceeding ICC’s margin requirement. Proposed Rule Change margin requirement, by such amount as Such changes would accordingly In its filing with the Commission, ICC is commensurate with the risk replace the requirement in the Circular, included statements concerning the presented. Such changes are intended to which ICC believes is appropriate to purpose of and basis for the proposed clarify and incorporate terminology that facilitate compliance with amended 14 rule change, security-based swap is consistent with amended CFTC CFTC Regulation 39.13(g)(8)(ii), and submission, or advance notice and Regulation 39.13(g)(8)(ii) 7 to facilitate better support ICC’s ability to manage discussed any comments it received on compliance. the risks posed by Non-Participant the proposed rule change, security- In connection with the proposed Parties as the proposed changes result in based swap submission, or advance amendments, ICC would also revoke Participants collecting Non-Participant notice. The text of these statements may Circular 2012/008 (the ‘‘Circular’’) 8 Collateral at levels commensurate with be examined at the places specified in which requires FCM Participants to the risk presented by each Non- Item IV below. ICC has prepared collect margin from Non-Participant Participant Party. Such changes further summaries, set forth in sections (A), (B), Parties in respect of such Non- provide clarity and transparency on the and (C) below, of the most significant Participant Parties’ non-hedge positions, requirement in Rule 406(b) regarding aspects of these statements. at a level that is 10% greater than ICC’s the provision of Non-Participant Collateral and thus strengthen the Rules (A) Clearing Agency’s Statement of the related margin requirement with respect to each product and swap portfolio. with clear and more specific guidance, Purpose of, and Statutory Basis for, the which supports the prompt and accurate Proposed Rule Change Amended CFTC Regulation 39.13(g)(8)(ii) 9 intended to replace this clearance and settlement of securities (a) Purpose prior market structure, which is transactions, derivatives agreements, ICC proposes revisions to Rule 406(b) reflected in current Rule 406 and the contracts, and transactions, the to clarify an existing requirement of Circular. safeguarding of securities and funds which are in the custody or control of Participants regarding the provision of (b) Statutory Basis Non-Participant Collateral by Non- ICC or for which it is responsible, and Participant Parties and to update the ICC believes that the proposed rule the protection of investors and the terminology in a manner that is change is consistent with the public interest. The proposed rule requirements of Section 17A of the change is thus consistent with the consistent with amended Commodity 10 Futures Trading Commission (‘‘CFTC’’) Act and the regulations thereunder prompt and accurate clearance and settlement of securities transactions, Regulation 39.13(g)(8)(ii),6 applicable to applicable to it, including the applicable 11 derivatives agreements, contracts, and ICC as a derivatives clearing standards under Rule 17Ad–22. In transactions, the safeguarding of organization, which requires particular, Section 17A(b)(3)(F) of the 12 securities and funds in the custody or compliance by January 27, 2021. As Act requires that the rule change be control of ICC or for which it is such, ICC has filed the proposed rule 7 Id. responsible, and the protection of change for immediate effectiveness and 8 The Circular was issued on April 20, 2012 and investors and the public interest, within proposes that it will be operative on or is available at the following: https:// _ the meaning of Section 17A(b)(3)(F) of www.theice.com/publicdocs/clear credit/circulars/ 15 3 15 U.S.C. 78s(b)(3)(A). Circular_2012_008_FINAL.pdf. the Act. 4 17 CFR 240.19b–4(f)(6). 9 17 CFR 39.13(g)(8)(ii). 5 Capitalized terms used but not defined herein 10 15 U.S.C. 78q–1. 13 17 CFR 39.13(g)(8)(ii). have the meanings specified in the Rules. 11 17 CFR 240.17Ad–22. 14 Id. 6 17 CFR 39.13(g)(8)(ii). 12 15 U.S.C. 78q–1(b)(3)(F). 15 15 U.S.C. 78q–1(b)(3)(F).

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The amendments would also satisfy with, the risks and particular attributes to ICC. Such changes also foster a more relevant requirements of Rule 17Ad– of each relevant product, portfolio, and clear and transparent Rule that will 22.16 Rule 17Ad–22(e)(4)(ii) 17 requires market and marks participant positions enhance ICC’s ability to identify, each covered clearing agency to to market and collects margin, including monitor, and manage the risks posed by establish, implement, maintain, and variation margin or equivalent charges if Non-Participant Parties, consistent with enforce written policies and procedures relevant, at least daily and includes the the requirements of Rule 17Ad– reasonably designed to effectively authority and operational capacity to 22(e)(19).24 identify, measure, monitor, and manage make intraday margin calls in defined its credit exposures to participants and circumstances. As described above, the (B) Clearing Agency’s Statement on those arising from its payment, clearing, proposed revisions are intended to Burden on Competition and settlement processes, including by clarify the existing requirement in Rule ICC does not believe the proposed maintaining additional financial 406(b) and to incorporate terminology amendments would have any impact, or resources at the minimum to enable it that is consistent with amended CFTC impose any burden, on competition. to cover a wide range of foreseeable Regulation 39.13(g)(8)(ii) 21 to facilitate The proposed rule change will apply stress scenarios that include, but are not compliance. Such revisions do not uniformly across all market participants. limited to, the default of the two change ICC’s margin methodology, Therefore, ICC does not believe the participant families that would which continues to consider, and proposed rule change imposes any potentially cause the largest aggregate produce margin levels commensurate burden on competition that is credit exposure for the covered clearing with, the risks and particular attributes inappropriate in furtherance of the agency in extreme but plausible market of each relevant product, portfolio, and purposes of the Act. conditions. The proposed changes market, and do not impact or alter ICC’s promote ICC’s ability to address and ability to collect margin or make (C) Clearing Agency’s Statement on manage the risk posed by Non- intraday margin calls. Therefore, ICC Comments on the Proposed Rule Participant Parties, including by believes that the proposed rule change Change Received From Members, clarifying that the amount of Non- is consistent with the requirements of Participants or Others Participant Collateral would be Rule 17Ad–22(e)(6)(i) and (ii).22 Written comments relating to the commensurate with the risk presented Rule 17Ad–22(e)(19) 23 requires each proposed rule change have not been by such Non-Participant Party and by covered clearing agency to establish, solicited or received. ICC will notify the directing Participants to identify Non- implement, maintain, and enforce Commission of any written comments Participant Parties with heightened risk written policies and procedures received by ICC. profiles and collect margin from them at reasonably designed to identify, a level exceeding ICC’s margin monitor, and manage the material risks III. Date of Effectiveness of the requirement. In ICC’s view, the to the covered clearing agency arising Proposed Rule Change and Timing for amended language in Rule 406(b) from arrangements in which firms that Commission Action protects the financial integrity of ICC are indirect participants in the covered Because the foregoing proposed rule and Participants, as it results in clearing agency rely on the services change does not: Participants collecting Non-Participant provided by direct participants to access (i) Significantly affect the protection Collateral in an amount commensurate the covered clearing agency’s payment, of investors or the public interest; with the risk presented by Non- clearing, or settlement facilities. The (ii) impose any significant burden on Participant Parties and is more proposed amendments support ICC’s competition; and appropriate in light of amended ability to manage the risks posed by (iii) become operative for 30 days Regulation 39.13(g)(8)(ii).18 Such Non-Participant Parties, including by from the date on which it was filed, or changes promote ICC’s ability to manage elaborating on the requirement in Rule such shorter time as the Commission the risks posed by Non-Participant 406(b) to state that the amount of Non- may designate, it has become effective Parties, including by managing the Participant Collateral would be pursuant to Section 19(b)(3)(A) 25 of the potential risks arising from Non- commensurate with the risk presented Act and Rule 19b–4(f)(6) 26 thereunder. Participant Party transactions relating to by such Non-Participant Party. The ICC has requested that the a potential default of a Non-Participant proposed changes also include language Commission waive both the five-day Party that disrupts a Participant, thereby directing Participants to identify Non- pre-filing requirement and the 30-day promoting ICC’s ability to continue to Participant Parties with heightened risk delayed operative date under Rule 19b– maintain its financial resources and profiles and collect margin from them at 4(6)(iii) 27 so that the proposed rule withstand the pressures of defaults, a level exceeding ICC’s margin change may become effective and consistent with the requirements of Rule requirement to replace general language operative upon filing with the 17Ad–22(e)(4)(ii).19 whereby ICC may require additional Commission. As noted above, ICC Rule 17Ad–22(e)(6)(i) and (ii) 20 margin with respect to Non-Participant designed the proposed amendments to require each covered clearing agency to Parties. Such changes would replace the Rule 406(b) for consistency with establish, implement, maintain, and requirement in the Circular, which amended CFTC Regulation enforce written policies and procedures would result in Participants collecting 39.13(g)(8)(ii),28 which requires ICC’s reasonably designed to cover its credit Non-Participant Collateral at levels compliance by January 27, 2021. ICC exposures to its participants by commensurate with the risk presented does not believe that any delay in establishing a risk-based margin system by each Non-Participant Party and implementing rules that reflect these that, at a minimum, considers, and support ICC’s ability to manage the risks requirements will benefit Participants, produces margin levels commensurate posed by Non-Participant Parties given their customers, or any other market the relationship that Participants have 16 17 CFR 240.17Ad–22. with Non-Participant Parties as opposed 24 Id. 17 17 CFR 240.17Ad–22(e)(4)(ii). 25 15 U.S.C. 78s(b)(3)(A). 18 17 CFR 39.13(g)(8)(ii). 21 17 CFR 39.13(g)(8)(ii). 26 17 CFR 240.19b–4(f)(6). 19 17 CFR 240.17Ad–22(e)(4)(ii). 22 17 CFR 240.17Ad–22(e)(6)(i) and (ii). 27 17 CFR 240.19b–4(f)(6)(iii). 20 17 CFR 240.17Ad–22(e)(6)(i) and (ii). 23 17 CFR 240.17Ad–22(e)(19). 28 17 CFR 39.13(g)(8)(ii).

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participants. Any delay is also likely to action is necessary or appropriate in the should be submitted on or before be inconsistent with market public interest, for the protection of February 12, 2021. expectations in light of the compliance investors, or otherwise in furtherance of For the Commission, by the Division of date of the amended CFTC regulation. the purposes of the Act. Trading and Markets, pursuant to delegated As a result, in ICC’s view, immediate authority.31 effectiveness is consistent with the IV. Solicitation of Comments protection of investors and the public Interested persons are invited to J. Matthew DeLesDernier, interest. submit written data, views, and Assistant Secretary. The Commission believes that the arguments concerning the foregoing, [FR Doc. 2021–01284 Filed 1–21–21; 8:45 am] delay of the operation of the proposed including whether the proposed rule BILLING CODE 8011–01–P rule change, through the five-day pre- change is consistent with the Act. filing requirement and the 30-day Comments may be submitted by any of delayed operative date, could impede the following methods: SECURITIES AND EXCHANGE ICC’s timely compliance with amended COMMISSION CFTC Regulation 39.13(g)(8)(ii) 29 and Electronic Comments • thereby defer the intended benefits and Use the Commission’s internet [Release No. 34–90925; File No. SR–CBOE– objectives of such regulatory comment form (http://www.sec.gov/ 2020–034] requirements for customer initial margin rules/sro.shtml); or levels. This, in turn, could disrupt • Send an email to rule-comments@ Self-Regulatory Organizations; Cboe market expectations that ICC will sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Designation implement the amended CFTC ICC–2021–001 on the subject line. of a Longer Period for Commission regulation by the January 27, 2021 Action on Proceedings To Determine Paper Comments compliance date, which may adversely Whether To Approve or Disapprove a affect ICC and its ability to timely Send paper comments in triplicate to Proposed Rule Change, as Modified by replace the requirement in the Circular Secretary, Securities and Exchange Amendment No. 1, To Authorize for and manage the risks posed by Non- Commission, 100 F Street NE, Trading Flexible Exchange Options on Participant Parties in compliance with Washington, DC 20549. Full-Value Indexes With a Contract applicable regulatory requirements for All submissions should refer to File Multiplier of One the collection of Non-Participant Number SR–ICC–2021–001. This file Collateral. The Commission therefore number should be included on the January 14, 2021. believes that waiving the five-day pre- subject line if email is used. To help the filing requirement and 30-day operative On June 30, 2020, Cboe Exchange, Inc. Commission process and review your delay should facilitate ICC’s timely filed with the Securities and Exchange comments more efficiently, please use compliance with the amended CFTC Commission (‘‘Commission’’), pursuant regulation and avert any potential only one method. The Commission will to Section 19(b)(1) of the Securities 1 adverse consequences if such post all comments on the Commission’s Exchange Act of 1934 (‘‘Act’’) and Rule 2 compliance were delayed. Moreover, the internet website (http://www.sec.gov/ 19b–4 thereunder, a proposed rule Commission believes the proposed rule rules/sro.shtml). Copies of the change to authorize for trading flexible change would not impose any submission, all subsequent exchange options on full-value indexes significant burden on competition amendments, all written statements with a contract multiplier of one. The because it applies uniformly to both with respect to the proposed rule proposed rule change was published in 3 FCM and broker-dealer Participants and change that are filed with the the Federal Register on July 20, 2020. their customers as Non-Participant Commission, and all written On September 2, 2020, pursuant to 4 Parties. Thus, the Commission believes communications relating to the Section 19(b)(2) of the Act, the the proposed rule change, and waiving proposed rule change between the Commission designated a longer period the five-day pre-filing requirement and Commission and any person, other than within which to approve the proposed 30-day operative delay, would not (i) those that may be withheld from the rule change, disapprove the proposed significantly affect the protection of public in accordance with the rule change, or institute proceedings to investors or the public interest; (ii) provisions of 5 U.S.C. 552, will be determine whether to disapprove the impose any significant burden on available for website viewing and proposed rule change.5 On October 15, competition; or (iii) affect the printing in the Commission’s Public 2020, the Commission instituted safeguarding of funds or securities in Reference Room, 100 F Street NE, proceedings under Section 19(b)(2)(B) of the custody or control of ICC or for Washington, DC 20549, on official the Act 6 to determine whether to which it is responsible. Therefore, the business days between the hours of approve or disapprove the proposed Commission waives the five-day pre- 10:00 a.m. and 3:00 p.m. Copies of such rule change.7 On January 21, 2021, the filing requirement and 30-day operative filings will also be available for delay, and designates the proposed rule inspection and copying at the principal 31 17 CFR 200.30–3(a)(12). change as operative upon filing.30 office of ICE Clear Credit and on ICE 1 15 U.S.C. 78s(b)(1). At any time within 60 days of the Clear Credit’s website at https:// 2 17 CFR 240.19b–4. filing of the proposed rule change, the www.theice.com/clear-credit/regulation. 3 See Securities Exchange Act Release No. 89308 (July 14, 2020), 85 FR 43923 (‘‘Notice’’). Comments Commission summarily may All comments received will be posted received on the proposed rule change are available temporarily suspend such rule change if without change. Persons submitting on the Commission’s website at: https:// it appears to the Commission that such comments are cautioned that we do not www.sec.gov/comments/sr-cboe-2020-034/ redact or edit personal identifying srcboe2020034.htm. 4 29 17 CFR 39.13(g)(8)(ii). information from comment submissions. 15 U.S.C. 78s(b)(2). 5 30 For purposes only of waiving the five-day pre- See Securities Exchange Act Release No. 89743, You should submit only information 85 FR 55717 (September 9, 2020). filing requirement and the 30-day operative delay, that you wish to make available the Commission has considered the proposed rule 6 15 U.S.C. 78s(b)(2)(B). change’s impact on efficiency, competition, and publicly. All submissions should refer 7 See Securities Exchange Act Release No. 90204, capital formation. See 15 U.S.C. 78c(f). to File Number SR–ICC–2021–001 and 85 FR 67037 (October 21, 2020).

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Exchange submitted Amendment No. 1 SECURITIES AND EXCHANGE For the Commission, by the Division of to the proposed rule change.8 COMMISSION Trading and Markets, pursuant to delegated authority.6 Section 19(b)(2) of the Act 9 provides J. Matthew DeLesDernier, that, after initiating proceedings, the [Release No. 34–90927; SR–NYSEArca– Assistant Secretary. Commission shall issue an order 2020–105] approving or disapproving the proposed [FR Doc. 2021–01283 Filed 1–21–21; 8:45 am] Self-Regulatory Organizations; NYSE BILLING CODE 8011–01–P rule change not later than 180 days after Arca, Inc.; Notice of Designation of a the date of publication of notice of filing Longer Period for Commission Action of the proposed rule change. The on a Proposed Rule Change To List SECURITIES AND EXCHANGE Commission may extend the period for and Trade the Shares of the Teucrium COMMISSION issuing an order approving or Water Fund Under NYSE Arca Rule disapproving the proposed rule change, [Release No. 34–90923; File No. SR– 8.200–E, Commentary .02 CboeEDGX–2021–002] however, by not more than 60 days if the Commission determines that a January 14, 2021. Self-Regulatory Organizations; Cboe longer period is appropriate and On November 25, 2020, NYSE Arca, EDGX Exchange, Inc.; Notice of Filing publishes the reasons for such Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed and Immediate Effectiveness of a determination. The proposed rule with the Securities and Exchange Proposed Rule Change To Amend the change was published for comment in Commission (‘‘Commission’’), pursuant Fees Applicable to the EDGX Top Feed the Federal Register on July 20, 2020.10 to Section 19(b)(1) of the Securities 1 The 180th day after publication of the Exchange Act of 1934 (‘‘Act’’) and Rule January 14, 2021. 2 Notice is January 16, 2021. The 19b–4 thereunder, a proposed rule Pursuant to Section 19(b)(1) of the Commission is extending the time change to list and trade the shares of the Securities Exchange Act of 1934 (the Teucrium Water Fund under NYSE Arca 1 2 period for approving or disapproving ‘‘Act’’), and Rule 19b–4 thereunder, Rule 8.200–E, Commentary .02. The notice is hereby given that on January 4, the proposal for an additional 60 days. proposed rule change was published for 2021, Cboe EDGX Exchange, Inc. (the The Commission finds that it is comment in the Federal Register on ‘‘Exchange’’ or ‘‘EDGX’’) filed with the appropriate to designate a longer period December 14, 2020.3 The Commission Securities and Exchange Commission within which to issue an order has received no comment letters on the (the ‘‘Commission’’) the proposed rule approving or disapproving the proposed proposed rule change. change as described in Items I, II, and rule change so that it has sufficient time Section 19(b)(2) of the Act 4 provides III, below, which Items have been to consider the proposed rule change, as that within 45 days of the publication of prepared by the Exchange. The modified by Amendment No. 1. notice of the filing of a proposed rule Commission is publishing this notice to Accordingly, the Commission, pursuant change, or within such longer period up solicit comments on the proposed rule to Section 19(b)(2) of the Act,11 to 90 days as the Commission may change from interested persons. designate if it finds such longer period designates March 17, 2021, as the date I. Self-Regulatory Organization’s to be appropriate and publishes its by which the Commission shall either Statement of the Terms of Substance of reasons for so finding, or as to which the approve or disapprove or the proposed the Proposed Rule Change rule change (File Number SR–CBOE– self-regulatory organization consents, 2020–034), as modified by Amendment the Commission will either approve the Cboe EDGX Exchange, Inc. (‘‘EDGX’’ or the ‘‘Exchange’’) is filing with the No. 1. proposed rule change, disapprove the proposed rule change, or institute Securities and Exchange Commission For the Commission, by the Division of proceedings to determine whether the (the ‘‘Commission’’) a proposed rule Trading and Markets, pursuant to delegated proposed rule change should be change to amend the fees applicable to authority.12 disapproved. The 45th day after the EDGX Top Feed. The text of the J. Matthew DeLesDernier, publication of the notice for this proposed rule change is provided in Assistant Secretary. proposed rule change is January 28, Exhibit 5. [FR Doc. 2021–01281 Filed 1–21–21; 8:45 am] 2021. The Commission is extending this The text of the proposed rule change is also available on the Exchange’s BILLING CODE 8011–01–P 45-day time period. The Commission finds it appropriate website (http://markets.cboe.com/us/ to designate a longer period within options/regulation/rule_filings/edgx/), which to take action on the proposed at the Exchange’s Office of the rule change so that it has sufficient time Secretary, and at the Commission’s to consider the proposed rule change. Public Reference Room. Accordingly, the Commission, pursuant II. Self-Regulatory Organization’s 5 to Section 19(b)(2) of the Act, Statement of the Purpose of, and designates March 14, 2021 as the date Statutory Basis for, the Proposed Rule by which the Commission shall either Change approve or disapprove, or institute proceedings to determine whether to In its filing with the Commission, the 8 In Amendment No. 1, the Exchange provided disapprove, the proposed rule change Exchange included statements additional support for the proposal. The full text of (File No. SR–NYSEArca–2020–105). concerning the purpose of and basis for Amendment No. 1 is available on the Commission’s the proposed rule change and discussed website at: https://www.sec.gov/comments/sr-cboe- 1 15 U.S.C. 78s(b)(1). any comments it received on the 2020-034/srcboe2020034.htm. 2 17 CFR 240.19b–4. proposed rule change. The text of these 9 15 U.S.C. 78s(b)(2). 3 See Securities Exchange Act Release No. 90608 10 See supra note 3. (December 8, 2020), 85 FR 80854. 6 17 CFR 200.30–3(a)(31). 11 15 U.S.C. 78s(b)(2). 4 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1). 12 17 CFR 200.30–3(a)(57). 5 Id. 2 17 CFR 240.19b–4.

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statements may be examined at the stocks has become ‘‘more fragmented Fees for Internal Distribution of the places specified in Item IV below. The and competitive.’’ 6 EDGX Top Feed Exchange has prepared summaries, set Equity trading is currently dispersed Currently, the Exchange charges a forth in sections A, B, and C below, of across sixteen exchanges, including modest fee of $500 per month for the most significant aspects of such three new U.S. equities exchanges that internal distribution of EDGX Top Feed statements. launched trading in 2020, 32 alternative data,12 i.e., distribution within the 7 distributor’s own firm,13 and does not A. Self-Regulatory Organization’s trading systems, and numerous broker- charge any additional fees for internal Statement of the Purpose of, and dealer internalizers and wholesalers, all distribution based on the number of Statutory Basis for, the Proposed Rule competing fiercely for order flow. Based Professional or Non-Professional Users Change on publicly-available information, no single U.S. equities exchange has more that receive access to this information. 1. Purpose than 20% market share.8 In turn, the These internal distribution fees have market for top-of-book data is highly been in place, without change, since The purpose of the proposed rule early 2015 when the Exchange first competitive as national securities change is to amend the fees applicable began offering the EDGX Top Feed.14 In exchanges compete both with each other to the EDGX Top Feed, which is an the time since, the Exchange has made and with the securities information uncompressed data feed that offers both a number of significant enhancements to processors (‘‘SIPs’’) to provide efficient, top-of-book quotations and execution its platform, including notably the reliable, and low-cost data to a wide information based on equity orders introduction of priority for retail limit range of investors and market entered into the System.3 Specifically, orders,15 that have resulted in improved participants. In fact, Regulation NMS the Exchange proposes to: (1) Increase trading opportunities for investors and, requires all U.S. equities exchanges to the fee for internal distribution of the consequently, more valuable market provide their best bids and offers, and 16 EDGX Top Feed; and (2) introduce data. executed transactions, to the two Professional User fees for internal As discussed, the Exchange now registered SIPs for dissemination to the Professional Users of the EDGX Top proposes to increase certain fees public.9 Top-of-book data is therefore applicable to firms that consume this Feed. The current fees for external widely available to investors today at a data as internal distributors, i.e., firms distribution of the EDGX Top Feed will relatively modest cost. National that use EDGX Top Feed data for continue to apply, without change, securities exchanges may also internal purposes as opposed to firms including various incentive programs disseminate their own top-of-book data, that distribute such data externally to its that the Exchange has adopted to but no rule or regulation of the customers. As proposed, the Exchange facilitate the provision of lower-cost Commission requires market would increase the monthly charge for market data to retail and other participants to purchase top-of-book internal distribution of EDGX Top Feed investors.4 data from an exchange.10 The EDGX Top data to $750 per month, which would Market Background Feed therefore competes with the SIP continue to be significantly cheaper and with similar products offered by than similar products offered by the The Commission has repeatedly other national securities exchanges that Exchange’s main competitors, including expressed its preference for competition offer their own competing market data both other national securities exchanges over regulatory intervention in products. In fact, there are twelve that offer top-of-book data products to determining prices, products, and competing products offered by other their customers as well as the SIPs that services in the securities markets. In national securities exchanges today,11 provide similar ‘‘core data’’ to vendors and subscribers pursuant to Regulation Regulation NMS, the Commission not counting products offered by the NMS. In addition, the Exchange would highlighted the importance of market Exchange’s affiliates, and each of the introduce Professional User fees for forces in determining prices and SRO Exchange’s affiliated U.S. equities revenues, and also recognized that internal Professional Users of the EDGX exchanges also offers similar top-of- Top Feed. Those Professional User fees current regulation of the market system book data. ‘‘has been remarkably successful in will be the same as the modest fee currently charged for external promoting market competition in its 6 See Securities Exchange Act Release No. 51808, broader forms that are most important to 84 FR 5202, 5253 (February 20, 2019) (File No. S7– 12 See EDGX Schedule of Fees, EDGX Top, 5 05–18) (Transaction Fee Pilot for NMS Stocks Final investors and listed companies.’’ As Internal Distribution. Rule) (‘‘Transaction Fee Pilot’’). the Commission itself recognized, the 13 The Exchange’s fee schedule defines an 7 See FINRA ATS Transparency Data, available at Internal Distributor of an Exchange Market Data market for trading services in NMS https://otctransparency.finra.org/otctransparency/ product as a Distributor that receives the Exchange AtsData. A list of alternative trading systems Market Data product and then distributes that data 3 See EDGX Rule 13.8(c). registered with the Commission is available at to one or more Users within the Distributor’s own 4 See e.g., EDGX Schedule of Fees, EDGX Top, https://www.sec.gov/foia/docs/atslist.htm. entity. See EDGX Schedule of Fees, Market Data Small Retail Broker Distribution Program; EDGX 8 See Cboe Global Markets, U.S. Equities Market Fees, Definitions. Schedule of Fees, Financial Product Distribution Volume Summary, available at http:// 14 See Securities Exchange Act Release No. 74282 _ Program. The Small Retail Broker Distribution markets.cboe.com/us/equities/market share/. (February 17, 2015), 80 FR 9487 (February 23, 2015) Program is a pricing program offered by the 9 See Rule 602 of Regulation NMS. (SR–EDGX–2015–09). Exchange that allows small retail brokers that 10 By contrast, Rule 603(c) of Regulation NMS (the 15 See Securities Exchange Act Release No. 87200 purchase top-of-book market data from the ‘‘Vendor Display Rule’’) effectively requires that SIP (October 2, 2019), 84 FR 53788 (October 8, 2019) Exchange to benefit from discounted fees for access data or some other consolidated display be utilized (SR–CboeEDGX–2019–012) (Approval Order). to such market data. The Financial Product in any context in which a trading or order-routing 16 The Exchange is also about to extend its early Distribution Program lowers the cost of distributing decision can be implemented. trading hours to begin at 4:00 a.m. ET, which would Derived Data based upon the Exchange’s top-of- 11 Competing top of book products include, similarly provide additional value to EDGX Top book offerings, including Derived Data that is often Nasdaq Basic, BX Basic, PSX Basic, NYSE BQT, subscribers who would receive additional used by retail investors. NYSE BBO/Trades, NYSE BQT, NYSE Arca BBO/ information about quotes and trades on EDGX 5 See Securities Exchange Act Release No. 51808 Trades, NYSE American BBO/Trades, NYSE during the Early Trading Session. See Securities (June 9, 2005), 70 FR 37495, 37499 (June 29, 2005) Chicago BBO/Trades, IEX TOPS, MIAX PEARL Exchange Act Release No. 90509 (November 24, (S7–10–04) (Final Rule) (‘‘Regulation NMS Equities Top of Market Feed, and MEMX MEMOIR 2020), 85 FR 77310 (December 1, 2020) (SR– Adopting Release’’). Top. CboeEDGX–2020–056).

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distribution of the EDGX Top Feed, i.e., either with or without a fee. The consolidated quotation and last-sale $4 per month for each Professional User. national securities exchanges also information feeds offered by the SIPs, a There would continue to be no charge compete with the SIPs for market data customer’s decision as to whether to associated with internal distribution to customers, as much of the information purchase the EDGX Top Feed is entirely Non-Professional Users. Further, as offered to market participants and discretionary, and is based on that firms discussed, the current fees for external investors through the EDGX Top Feed is individual business needs. Generally, distribution of the EDGX Top Feed similarly made available to market firms that choose to subscribe to the would continue to apply, without participants and investors through the EDGX Top Feed do so because they change, including various incentive SIPs, consolidated with data from each believe that it is a cost-effective programs that the Exchange has adopted of the other fifteen exchanges. It is in alternative to core data offered by the to facilitate the provision of lower-cost this robust and competitive market in SIPs that provides valuable information market data to retail and other investors. which the Exchange is proposing to about the market for securities traded on As a result, the Exchange believes that modestly increase its fees. the Exchange, particularly in cases the proposed fee changes would allow The Commission has repeatedly where a consolidated display is not it to be appropriately compensated for expressed its preference for competition required pursuant to the Vendor Display the value of its market data, particularly over regulatory intervention in Rule. Such firms are able to determine from professional financial services determining prices, products, and for themselves whether the EDGX Top firms that use that data for internal services in the securities markets. Feed helps them to achieve their purposes, while simultaneously Further, with respect to market data, the business goals, and if so, whether or not ensuring that its data would continue to decision of the United States Court of it is attractively priced compared to be available to a wide range of market Appeals for the District of Columbia other similar products. participants at a cost that facilitates Circuit in NetCoalition v. SEC upheld Indeed, if the EDGX Top Feed does widespread availability of such data. the Commission’s reliance on the not provide sufficient value to firms 2. Statutory Basis existence of competitive market based on the uses those firms may have mechanisms to evaluate the for it, such firms may simply choose to The Exchange believes that the reasonableness and fairness of fees for conduct their business operations in proposed rule change is consistent with proprietary market data: ‘‘In fact, the ways that do not use the EDGX Top 17 the objectives of Section 6 of the Act, legislative history indicates that the Feed. In fact, comparing the number of in general, and furthers the objectives of Congress intended that the market internal distributors that currently 18 Section 6(b)(4), in particular, as it is system ‘evolve through the interplay of subscribe to the EDGX Top Feed, based designed to provide for the equitable competitive forces as unnecessary on data compiled by the Exchange as of allocation of reasonable dues, fees and regulatory restrictions are removed’ and November 2020, to the total number of other charges among its members and that the SEC wield its regulatory power internal distributors that subscribe to other recipients of Exchange data. In ‘in those situations where competition core data offered by the CTA and UTP addition, the Exchange believes that the may not be sufficient,’ such as in the SIPs, as published on plan websites for proposed rule change is consistent with creation of a ‘consolidated transactional Q3 2020,24 less than 1.9% of internal Section 11(A) of the Act as it supports reporting system.’ ’’ 21 The court agreed distributors that purchase U.S. equities (i) fair competition among brokers and with the Commission’s conclusion that data choose to subscribe to the EDGX dealers, among exchange markets, and ‘‘Congress intended that ‘competitive Top Feed. The EDGX Top Feed between exchange markets and markets forces should dictate the services and therefore represents an insignificant other than exchange markets, and (ii) practices that constitute the U.S. proportion of the relevant market for the availability to brokers, dealers, and national market system for trading such market data, and significantly investors of information with respect to equity securities.’ ’’ 22 As discussed in more internal distributors choose not to quotations for and transactions in this filing, significant competitive forces purchase this product than those that 19 securities. Finally, the proposed rule constrain the ability of the Exchange to do. Given the insignificant percentage of change is also consistent with Rule 603 charge supra-competitive fees. internal distributors that consume the 20 of Regulation NMS, which provides EDGX Top Feed, it is clear that such that any national securities exchange i. The EDGX Top Feed Is an Optional Market Data Product, and the Exchange firms can and do exercise their right to that distributes information with respect choose to purchase, or not purchase, to quotations for or transactions in an is Constrained in Its Pricing by Significant Competitive Forces this particular market data product. NMS stock do so on terms that are not Although the Exchange is not unreasonably discriminatory. Subscribing to the EDGX Top Feed is required to make any data, including The Exchange operates in a highly entirely optional. The Exchange is not top-of-book data, available through its competitive environment. Indeed, with required to make the EDGX Top Feed proprietary market data platform, the the launch of three new national available to any customers, nor is any Exchange believes that making such securities exchanges that trade U.S. customer required to purchase the equity securities last September, there EDGX Top Feed. Unlike certain other and Financial Markets Association for Review of are now sixteen registered U.S equities data products that firms may be Actions Taken by Self-Regulatory Organizations, exchanges, and with the exception of required to purchase in order to fulfill Release Nos. 34–72182; AP–3–15350; AP–3–15351 Long-Term Stock Exchange, Inc. 23 (May 16, 2014). Similarly, there is no requirement regulatory obligations, e.g., the in Regulation NMS or any other rule that (‘‘LTSE’’), which has determined to not proprietary data be utilized for order routing offer any proprietary market data feeds, 21 NetCoalition v. SEC, 615 F.3d 525, 535 (D.C. decisions, and some broker-dealers and ATSs have each of these exchanges offer associated Cir. 2010) (‘‘NetCoalition I’’) (quoting H.R. Rep. No. chosen not to do so. market data products to their customers, 94–229 at 92 (1975), as reprinted in 1975 24 See CTA Quarterly Population Metrics (Q3 U.S.C.C.A.N. 323). 2020), available at https://www.ctaplan.com/ 22 Id. at 535. publicdocs/ctaplan/CTAPLAN_Population_ 17 15 U.S.C. 78f. 23 The Exchange notes that broker-dealers are not Metrics_3Q2020.pdf; UTP Quarterly Population 18 15 U.S.C. 78f(b)(4). required to purchase proprietary market data to Metrics (Q3 2020), available at https:// 19 15 U.S.C. 78k–1. comply with their best execution obligations. See In www.utpplan.com/DOC/UTP_2020_Q3_Stats_with_ 20 See 17 CFR 242.603. the Matter of the Application of Securities Industry Processor_Stats.pdf.

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data available increases investor choice, of attracting customers to their exchange its innovative market model that has and contributes to a fair and competitive while they seek to grow market share. In been successful in attracting retail limit market. Specifically, making such data this way, the EDGX Top Feed, SIP data orders, increasing the Exchange’s publicly available through proprietary products, and other top-of-book market share to over 7% consolidated data feeds allows investors to choose products offered by a number of U.S. U.S. equities volume.27 Specifically, the alternative, potentially less costly, equities exchanges, are all substitutes. EDGX Top Feed offers competitively- market data based on their business The availability of these substitute priced alternative to top-of-book data needs. While some market participants products constrains the Exchange’s disseminated by SIPs, i.e., core data, for that desire a consolidated display often ability to charge supra-competitive firms that do not need or desire a choose the SIP to satisfy their top-of- prices as market participants can easily consolidated display covering all book data needs, and in some cases are obtain similar data from one of the sixteen U.S. equities exchanges, or effectively required to do so under the Exchange’s many competitors. In fact, similar data disseminated by other Vendor Display Rule, others may prefer the impact of competition on the market national securities exchanges. It is to purchase data directly from one or in which the EDGX Top Feed is offered purchased by a wide variety of market more national securities exchanges. For to market participants and investors is participants and vendors, including data example, a buy-side investor or fintech showcased by the Exchange’s other platforms, websites, fintech firms, buy- firm may choose to purchase the EDGX recent fee changes related to this side investors, retail brokers, regional Top Feed, or a similar product from product, which involved the reduction banks, and securities firms inside and another exchange, in order to perform of fees to facilitate the Exchange’s outside of the U.S. that desire low cost, investment analysis, or to provide ability to compete for customers.26 high quality, real-time U.S. equity general information about the market for Distributors can discontinue use of the market data. By providing lower cost U.S. equity securities, respectively. In EDGX Top Feed at any time and for any access to U.S. equity market data, the either case the choice to purchase the reason, including due to an assessment EDGX Top Feed benefits a wide range EDGX Top Feed would be based on the of the reasonableness of fees charged. of investors that participate in the firm’s determination of the value of the In setting the proposed fees for the national market system. As discussed, data offered by their chosen product EDGX Top Feed, the Exchange the decision to purchase a particular compared to the cost of acquiring this considered the competitiveness of the market data product from a particular data instead of receiving similar data market for proprietary data and all of exchange is largely based on two factors: from other sources. The EDGX Top Feed the implications of that competition. (1) The quality of the data, and (2) the serves as a valuable reference for The Exchange believes that it has price charged for access to that data. investors that do not require a considered all relevant factors and has The Exchange believes that the EDGX consolidated display that contains not considered irrelevant factors in Top Feed is competitive on both of quotations for all sixteen U.S. equities order to establish reasonable fees. these factors. exchanges. Making alternative products Indeed, the Exchange has no market First, the EDGX Top Feed would available to market participants power and is not in a position to charge remain competitively priced compared ultimately ensures competition in the unreasonable fees for its top-of-book to similar products offered by other marketplace, and constrains the ability data as there are a number of competing comparable U.S. equities exchanges and of exchanges to charge supra- products in the market, including core data offered by the SIPs. Although competitive fees. products that are currently offered free the EDGX Top Feed is not offered free Further, in the event that a market of charge by certain other exchanges of charge like certain other competitor data customer views one exchange’s that have determined not to charge for offerings, particularly those offered by top-of-book data product and/or fees as their market data. The existence of newer U.S. equities exchanges that are more or less attractive than a alternatives to the EDGX Top Feed seeking to grow market share, it is made competitor’s offerings they can and ensures that the Exchange cannot set available at a price that is significantly often do switch between competing unreasonable fees when vendors and lower than the prices charged by the products. As discussed, much of the subscribers can freely elect these Exchange’s main competitors—i.e., top-of-book quotation information and alternatives or choose not to purchase a those with comparable market shares last-sale information offered within the specific proprietary data product if the and data quality. Notably, even with the EDGX Top Feed is also available on the attendant fees are not justified by the proposed fee increase, the EDGX Top SIP feeds, and for firms that do not returns that any particular vendor or Feed would remain significantly require a consolidated display, as is data recipient would achieve through cheaper than similar products offered by typically the case for the subscribers to the purchase. New York Stock Exchange LLC the EDGX Top Feed, similar top-of-book ii. The Proposed Fees Are Reasonable (‘‘NYSE’’), NYSE Arca, Inc. (‘‘Arca’’), information is available from a number Given the Value of the Data Provided to and The Nasdaq Stock Market LLC of competing U.S. equities exchanges.25 Customers, and When Compared to (‘‘Nasdaq’’) both in terms of the fees This include a number of large Competing Market Data Products charged for internal distribution and the established exchanges that charge for fees charge for each Professional User The proposed fees are also reasonable access to such top-of-book data, as well that is provided access to the feed. For as they represent a modest increase for as certain smaller or new exchange example, NYSE charges a total of $3,000 top-of-book data that has proven entrants that provide similar data per month for internal distribution of valuable for investors, particularly as without charge, in many cases as a way their equivalent products, i.e., $1,500 the Exchange grows market share due to per month for applicable top-of-book 25 Although the Exchange does not have access to 28 the customer lists for other competing products, it 26 See supra note 4. The Exchange also notes that quotation information, and an understands based on conversations with while this proposed fee change involves an increase subscribers to the EDGX Top Feed that they in fees, it is simultaneously filing another proposed 27 See Cboe Global Markets, U.S. Equities Market typically view exchange top-of-book products as fee change to expand its Financial Products Volume Summary, available at http:// substitutes and do not generally look to purchase Distribution Program and further reduce certain markets.cboe.com/us/equities/market_share/. such data from more than one national securities fees. See SR–CboeEDGX–2021–003 (pending 28 See NYSE PDP Market Data Pricing, Section exchange. publication). 1.3, NYSE BBO.

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additional $1,500 per month for provided in the EDGX Top Feed and Thus, all internal distributors would transaction information,29 both of which used by data recipients in their profit- have access to the EDGX Top Feed on are included in the EDGX Top Feed for generating activities. The EDGX Top the same equitable and non- a single fee.30 Arca, which has a similar Feed provides top-of-book quotations discriminatory terms. Similarly, with pricing model to NYSE, also charges a and transactions executed on the the introduction of Professional User higher rate of $1,500 per month for Exchange, and provides a valuable fees, internal distributors of the EDGX internal distribution of its equivalent window into the market for securities Top Feed will be subject to the same products, separated into a $750 per traded on a market that accounts for modest fees based solely on the number month charge for top-of-book quotation more than 7% of U.S. equity market of Professional Users that each internal information and an additional $750 per volume today.36 As discussed, the distributor has chosen to permission for month charge for transaction Exchange offers the EDGX Top Feed in access to this information. The information.31 Finally, Nasdaq charges a competitive environment where firms Exchange does not believe that it is its internal distributors a fee of $1,500 may freely choose which market data inequitable, or unfairly discriminatory, per month for Nasdaq Basic, which products best suit their business needs. to charge a fee based on the number of includes both top-of-book quotation Invariably, firms that choose to Professional Users within a firm that information and transaction information purchase the EDGX Top Feed instead of have access to the EDGX Top Feed as for the same fee, similar to the receiving one of the many free products this ensures that firms with the highest Exchange’s pricing model, but again at offered by other exchanges,37 including usage pay their equitable share for the a higher cost.32 In each case, the internal free products offered by an affiliate of data. distribution charges associated with the Exchange,38 have decided that the The Exchange also believes that it is obtaining comparable U.S. equities value of the EDGX Top Feed is greater fair and equitable, and not unfairly market data from NYSE, Arca, and than that offered by those other discriminatory, to continue not to Nasdaq runs at least double and up to products. Indeed, by attracting liquidity charge a fee for internal distribution to four times as much as the proposed fee providing orders, e.g., through retail Non-Professional Users. The Exchange’s to be charged by the Exchange, meaning priority, the Exchange is able to offer fee structure is generally designed to that the Exchange would continue to be market data products that benefit from facilitate lower cost access to its market offering its data at a price that is increased market quality. In turn, data by retail investors, either through attractive compared to the prices investors may choose to rely on those substantially lower User fees for Non- charged by its competitors. Similarly, products instead of other competitor Professional Users, or other incentive each of these exchanges charges a fee for offerings based on the value they programs, such as the Small Retail each Professional User that is higher provide in relation to any additional Broker Distribution Program, which was than that proposed by the Exchange— cost associated with obtaining that recently implemented to lower the cost i.e., $26 per month for Nasdaq,33 and $8 market data from the Exchange. The of the Exchange’s market data to small per month total for both NYSE and Exchange therefore believes that its broker-dealers that serve retail investors. Arca.34 Finally, the EDGX Top Feed also proposal is consistent with the The Exchange does not anticipate any remains competitively priced compared principles enshrined in Regulation NMS significant number of Non-Professional to core data provided by the SIPs for to ‘‘promote the wide availability of Users to receive EDGX Top Feed Data firms, e.g., buy-side investors or fintech market data and to allocate revenues to through internal, i.e., within the firms, that do not need or desire a SROs that produce the most useful data distributor’s firm, as opposed to external consolidated display covering all for investors.’’ 39 distribution, and in the event that sixteen U.S. equities exchanges.35 certain firms may distribute data Second, the proposed fees are iii. The Proposed Fees Are Equitable internally to Users that qualify as Non- reasonable given the value of the data and Not Unfairly Discriminatory as Professional, providing such Users Internal Distributors Will Be Subject to access without any User fees would Uniform Pricing Based on Their Usage 29 See NYSE PDP Market Data Pricing, Section facilitate the Exchange’s overall goals of 1.4, NYSE Trades. of the Data facilitating access to its data by retail 30 See supra note 3 and accompanying text. The The Exchange believes the proposed investors, which the Commission has Exchange also offers a separate market data product, i.e., EDGX Last Sale, that exclusively provides last fees for internal distribution of the continually found to be consistent with sale information. See EDGX Rule 13.8(d). However, EDGX Top Feed will continue to be the Exchange Act. all of the information contained in the EDGX Last allocated fairly and equitably among Sale Feed is also made available in the EDGX Top subscribers, and are not unfairly B. Self-Regulatory Organization’s Feed at no additional charge. discriminatory, as the proposed fees Statement on Burden on Competition 31 See NYSE PDP Market Data Pricing, Section 3.3, NYSE Arca BBO; NYSE PDP Market Data will apply equally to all data recipients The Exchange does not believe that Pricing, Section 3.4, NYSE Arca Trades. that choose to subscribe to the EDGX the proposed rule change would result 32 See Nasdaq Equity Rules, Equity 7, Pricing Top Feed and distribute that data to in any burden on competition that is not Schedule, Section 147(c)(1). In addition, Nasdaq internal subscribers. As proposed, all necessary or appropriate in furtherance also charges distributors a $100 monthly of the purposes of the Act. The administrative fee. See Nasdaq Equity Rules, Equity internal distributors of the EDGX Top 7, Pricing Schedule, Section 135. Feed will be subject to the same internal Exchange operates in a highly 33 Nasdaq’s Professional User fee is divided into distribution fee, regardless of the type of competitive environment, and its ability Nasdaq issues ($13), NYSE issues ($6.50), and other business that they operate, or the use to price these data products is issues ($6.50) for a total of $26 per month for each they plan to make of the data feed. constrained by: (i) Competition among Professional User. See Nasdaq Equity Rules, Equity 7, Pricing Schedule, Section 147(b)(1). exchanges that offer similar data 34 NYSE and Arca’s fees are both broken down 36 See https://markets.cboe.com/us/equities/ products to their customers; and (ii) the _ into $4 per month for BBO information and an market share/. existence of inexpensive real-time additional $4 per month for Trades information. See 37 See e.g., Investors Exchange Fee Schedule, consolidated data disseminated by the supra notes 28, 29, and 31. Market Data fees. SIPs. Top-of-book data is broadly 35 See CTA Schedule of Market Data Charges, 38 See e.g., Cboe EDGA Exchange, Inc., Fee available at https://www.ctaplan.com/pricing; UTP Schedule, EDGA Top. disseminated by both the SIPs and the Fee Schedule, available at https://utpplan.com/ 39 See Regulation NMS Adopting Release, supra sixteen U.S. equities exchanges. There DOC/Datapolicies.pdf. note 5, at 37503. are therefore a number of alternative

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products available to market of the Act 40 and paragraph (f) of Rule filing also will be available for participants and investors, including 19b–4 41 thereunder. At any time within inspection and copying at the principal products offered by certain competing 60 days of the filing of the proposed rule office of the Exchange. All comments U.S. equities exchanges without charge. change, the Commission summarily may received will be posted without change. In this competitive environment temporarily suspend such rule change if Persons submitting comments are potential subscribers are free to choose it appears to the Commission that such cautioned that we do not redact or edit which competing product to purchase to action is necessary or appropriate in the personal identifying information from satisfy their need for market public interest, for the protection of comment submissions. You should information. Often, the choice comes investors, or otherwise in furtherance of submit only information that you wish down to price, as market data customers the purposes of the Act. If the to make available publicly. All look to purchase cheaper top-of-book Commission takes such action, the submissions should refer to File data products, and quality, as market Commission will institute proceedings Number SR–CboeEDGX–2021–002 and participants seek to purchase data that to determine whether the proposed rule should be submitted on or before represents significant market liquidity. change should be approved or February 12, 2021. Intramarket Competition. The disapproved. For the Commission, by the Division of Exchange believes that the proposed IV. Solicitation of Comments Trading and Markets, pursuant to delegated fees do not put any market participants authority.42 at a relative disadvantage compared to Interested persons are invited to J. Matthew DeLesDernier, other market participants. As discussed, submit written data, views, and the proposed fees would apply to all arguments concerning the foregoing, Assistant Secretary. internal distributors of the EDGX Top including whether the proposed rule [FR Doc. 2021–01280 Filed 1–21–21; 8:45 am] Feed on an equal and non- change is consistent with the Act. BILLING CODE 8011–01–P discriminatory basis. The Exchange Comments may be submitted by any of therefore believes that the proposed fees the following methods: neither favor nor penalize one or more SECURITIES AND EXCHANGE Electronic Comments categories of market participants in a COMMISSION • Use the Commission’s internet manner that would impose an undue [Release No. 34–90931; File No. SR–FICC– burden on competition. To the extent comment form (http://www.sec.gov/ 2020–803] that particular fees would apply to only rules/sro.shtml); or • a subset of subscribers, e.g., Professional Send an email to rule-comments@ Self-Regulatory Organizations; Fixed versus Non-Professional Users, those sec.gov. Please include File Number SR– Income Clearing Corporation; Notice of distinctions are not unfairly CboeEDGX–2021–002 on the subject No Objection To Advance Notice To discriminatory and do not unfairly line. Include Same-Day Settling Trades in burden one set of customers over Paper Comments the Risk Management, Novation, another. • Guarantee, and Settlement Services of Intermarket Competition. The Send paper comments in triplicate the Government Securities Division’s Exchange believes that the proposed to Secretary, Securities and Exchange Delivery-Versus-Payment Service, and fees do not impose a burden on Commission, 100 F Street NE, Make Other Changes competition or on other SROs that is not Washington, DC 20549–1090. necessary or appropriate in furtherance All submissions should refer to File January 14, 2021. of the purposes of the Act. In setting the Number SR–CboeEDGX–2021–002. This On November 19, 2020, Fixed Income proposed fees, the Exchange is file number should be included on the Clearing Corporation (‘‘FICC’’) filed constrained by the availability of subject line if email is used. To help the with the Securities and Exchange numerous substitute products offered by Commission process and review your Commission (‘‘Commission’’) advance other national securities exchanges as comments more efficiently, please use notice SR–FICC–2020–803 (‘‘Advance well as core data offered by the SIPs. only one method. The Commission will Notice’’) pursuant to Section 806(e)(1) of Because market data customers can find post all comments on the Commission’s Title VIII of the Dodd-Frank Wall Street suitable substitute feeds, an exchange internet website (http://www.sec.gov/ Reform and Consumer Protection Act, that overprices its market data products rules/sro.shtml). Copies of the entitled Payment, Clearing and stands a high risk that users may submission, all subsequent Settlement Supervision Act of 2010 substitute another product. These amendments, all written statements (‘‘Clearing Supervision Act’’),1 and Rule competitive pressures ensure that no with respect to the proposed rule 19b–4(n)(1)(i) 2 under the Securities one exchange’s market data fees can change that are filed with the Exchange Act of 1934 (‘‘Exchange impose an undue burden on Commission, and all written Act’’).3 In the Advance Notice, FICC competition, and the Exchange’s communications relating to the proposes to (1) expand its provision of proposed fees do not do so here. proposed rule change between the central counterparty services to include Commission and any person, other than the start leg of certain repurchase C. Self-Regulatory Organization’s those that may be withheld from the agreement (‘‘repo’’) transactions, and (2) Statement on Comments on the public in accordance with the enable participating FICC members to Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be pair-off and settle certain offsetting Members, Participants, or Others available for website viewing and obligations, as described more fully No written comments were either printing in the Commission’s Public below. The Advance Notice was solicited or received. Reference Room, 100 F Street NE, published for public comment in the Washington, DC 20549, on official Federal Register on December 29, III. Date of Effectiveness of the business days between the hours of Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the 42 Commission Action 17 CFR 200.30–3(a)(12). 1 12 U.S.C. 5465(e)(1). The foregoing rule change has become 40 15 U.S.C. 78s(b)(3)(A). 2 17 CFR 240.19b–4(n)(1)(i). effective pursuant to Section 19(b)(3)(A) 41 17 CFR 240.19b–4(f). 3 15 U.S.C. 78a et seq.

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2020,4 and the Commission has received DVP repos involve a pair of details to FICC.12 A Demand no comments regarding the changes transactions between two parties. The Comparison occurs when an Inter- proposed in the Advance Notice.5 This first transaction (the ‘‘Start Leg’’) Dealer Broker (‘‘IDB’’) or qualifying non- publication serves as notice of no consists of the sale of securities, in IDB repo broker 13 (each, a ‘‘Repo objection to the Advance Notice. which one party delivers securities in Broker’’) submits trade details to FICC exchange for the other party’s delivery on behalf of both parties to a trade.14 I. The Advance Notice of cash. The second transaction (the FICC generally novates and A. Background ‘‘End Leg’’) occurs on a date after that guarantees settlement of a trade upon 15 FICC, through its Government of the Start Leg and consists of the Trade Comparison. Additionally, on a Securities Division (‘‘GSD’’), serves as a repurchase of securities, in which the daily basis, FICC aggregates and central counterparty (‘‘CCP’’) and obligations to deliver cash and matches a member’s offsetting provider of clearance and settlement securities are the reverse of the Start obligations resulting from the member’s Leg. The parties agree to the terms of the trades, thereby netting the member’s services for cash-settled U.S. Treasury 16 securities.6 Among its services, FICC trade, including the specific securities, total daily settlement obligations. In provides real-time trade matching, principal amount, interest rate, haircut, the DVP Service, such netting takes clearing, risk management, and netting and date of maturity (i.e., either place the night before the scheduled for repo transactions in U.S. Treasury overnight or term). settlement date of whichever leg of the A DVP repo that is scheduled to start repo would settle on the following securities in which all securities 17 delivery obligations are made against one or more business days after the business day. Trades that settle bilaterally outside of full payment (‘‘delivery-versus- submission of trade details to FICC is a FICC do not have the benefit of FICC’s payment’’ or ‘‘DVP’’) (the ‘‘DVP ‘‘forward starting’’ repo. A DVP repo CCP services, and therefore, such trades Service’’).7 that is scheduled to start on the same business day as trade details are can be subject to greater risk of settlement fails.18 Moreover, trades 4 Securities Exchange Act Release No. 90736 submitted to FICC is a ‘‘same-day (December 21, 2020), 85 FR 85743 (December 29, starting’’ repo. For forward starting facilitated by a Repo Broker that settle 2020) (File No. SR–FICC–2020–803) (‘‘Notice of repos, FICC acts as CCP for both the outside of FICC require multiple Filing’’). Start Leg and the End Leg. However, bilateral securities movements between 5 On November 19, 2020, FICC also filed a related since the inception of the DVP Service, the parties to the trade and the Repo proposed rule change (SR–FICC–2020–015) (‘‘Proposed Rule Change’’) with the Commission for same-day starting repos, FICC Broker. The greater the number of pursuant to Section 19(b)(1) of the Exchange Act generally has acted as CCP for the End bilateral securities movements involved and Rule 19b–4 thereunder. See 15 U.S.C. 78s(b)(1) Leg only.8 Although FICC does not in trade settlement, the greater the and 17 CFR 240.19b–4 respectively. The Proposed currently novate the Start Leg of same- potential for operational risk resulting Rule Change was published in the Federal Register on December 8, 2020. Securities Exchange Act day starting repos, FICC collects margin in settlement fails. If the Start Leg of a Release No. 90551 (December 2, 2020), 85 FR 79051 from the parties for the End Leg on the DVP repo submitted by a Repo Broker (December 8, 2020). In the Proposed Rule Change, scheduled settlement date of the Start fails to settle on the original scheduled FICC seeks approval of proposed changes to its 9 settlement date, FICC currently steps in rules necessary to implement the Advance Notice. Leg. Currently, the parties to a same- The comment period for the related Proposed Rule day starting repo settle the Start Leg that evening as CCP and assumes Change filing closed on December 29, 2020, and the bilaterally outside of FICC. Commission received no comments. As the The first step in the clearance and 12 See Rule 6A—Bilateral Comparison, supra note proposals contained in the Advance Notice were settlement process of a DVP repo is for 6. also filed as a proposed rule change, all public 13 For purposes of the Advance Notice, both IDBs comments received on the proposal are considered, the parties to submit the trade details to and non-IDB repo brokers are FICC members. A regardless of whether the comments are submitted FICC.10 Upon receipt, FICC validates the qualifying non-IDB repo broker is one that FICC has on the Proposed Rule Change or the Advance trade details in a procedure referred to determined: (1) Operates as a broker with regard to Notice. in FICC’s Rules as ‘‘Trade Comparison,’’ activity in a segregated repo account, and (2) agrees 6 FICC is composed of two divisions: GSD and the and participates in FICC’s repo netting service in Mortgage-Backed Securities Division (‘‘MBSD’’). which culminates in the legally binding the same manner as an IDB that participates in the GSD provides real-time trade matching, clearing, and enforceable contract between FICC service. See Rule 1—Definitions, supra note 6. risk management, and netting for trades in U.S. and the parties to the trade.11 There are 14 See Rule 6B—Demand Comparison, supra note government debt issues. MBSD provides real-time different types of Trade Comparisons, 6. 15 automated trade matching, trade confirmation, risk depending on which entity submits the See Rule 5—Comparison System, supra note 6. management, netting, and electronic pool 16 See Rule 11—Netting System, supra note 6. notification to the mortgage-backed securities trade details to FICC, and the 17 See Notice of Filing, supra note 4 at 85745–46. (‘‘MBS’’) market. The Advance Notice deals solely procedures, timing, and other applicable 18 There are several risk factors inherent to trades with proposed changes to the GSD Rulebook operational arrangements vary that clear bilaterally as opposed to trades that clear (‘‘Rules’’), which are available at http:// depending on the type. For example, a through a CCP. For example, the credit risk www.dtcc.com/legal/rules-and-procedures. associated with bilaterally cleared trades remains 7 Bilateral Comparison occurs when the In addition to the DVP Service, FICC also with the original counterparties, who might not provides such services to facilitate trading other individual FICC members that are the utilize robust and transparent margin requirements, types of repos. FICC’s General Collateral Finance parties to a trade each submit trade multilateral netting, emergency liquidity and loss ® (‘‘GCF’’) Repo Service enables members to trade sharing arrangements, or other risk mitigation general collateral finance repos based on rate, term, measures. See U.S. Department of the Treasury 8 There is one limited scenario in which FICC and underlying product throughout the day on a Report, A Financial System That Creates Economic currently acts as CCP for the Start Leg of a brokered blind basis. See Rule 20—Special Provisions for Opportunities: Capital Markets at 78, 81 (October same-day starting repo. Specifically, if the Start Leg GCF Repo Transactions, supra note 6. FICC’s 2017), available at https://www.treasury.gov/press- fails to settle on its original scheduled settlement Centrally Cleared Institutional Triparty (‘‘CCIT’’) center/press-releases/documents/a-financial- date, FICC currently assumes responsibility for Service enables trading of tri-party repos between system-capital-markets-final-final.pdf; Joint Staff settlement of the Start Leg on the evening of the members that participate in the GCF Repo Service Report: The U.S. Treasury Market at 55 (October 15, original scheduled settlement date. See Notice of and members that are institutional cash lenders 2014), available at https://www.treasury.gov/press- Filing, supra note 4 at 85744. (other than investment companies registered under center/press-releases/Documents/Joint_Staff_ 9 the Investment Company Act of 1940, as amended). See Notice of Filing, supra note 4 at 85744, 50. Report_Treasury_10-15-2014.pdf; Treasury Market See Rule 3B—CCIT Service, supra note 6. Unlike 10 Trade details may be submitted to FICC by, or Practices Group, White Paper on Clearing and the DVP Service, the GCF Repo and CCIT Services on behalf of, a member in a form, manner, and Settlement in the Secondary Market for U.S. settle via the triparty platform of a clearing bank. timeframe prescribed by FICC’s Rules. See Rule 5— Treasury Securities at 2–4 (July 11, 2019), available This Advance Notice proposes changes specific to Comparison System, supra note 6. at https://www.newyorkfed.org/medialibrary/ the DVP Service. 11 Id. Microsites/tmpg/files/CS_FinalPaper_071119.pdf.

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responsibility for settling the trade.19 provide a suite of services to their human or operational errors.27 FICC This process may involve FICC clients, including facilitating the further states that it included As-Of receiving securities from the failing bilateral settlement of the Start Leg of Trades in the Advance Notice in order party or netting the settlement same-day starting repos. FICC states that to reasonably include as many obligations arising from the Start Leg a requirement on Repo Brokers to variations of same-day starting repos as against those of the End Leg of the same participate in the Same-Day Settling possible to ensure that FICC would or another repo. FICC states that Service could disrupt the current provide consistent settlement although its current process of service offerings from Repo Brokers to processing for all same-day starting centralizing the settlement of such their clients.23 Since Repo Brokers repos.28 failed Start Legs decreases further submit trade details to FICC on behalf Currently, the Start Leg of an As-Of settlement risk, the current process is of both parties to a trade, a Repo Broker Trade settles outside of FICC. An End operationally inefficient because it does opting out of the Same-Day Settling Leg scheduled to settle on the current not eliminate the multiple securities Service would simply result in business day also settles outside of movements that give rise to the risk of settlement of the Start Leg bilaterally FICC. However, an End Leg scheduled settlement fails.20 outside of FICC, as is done currently. to settle on a date after the current business day settles with FICC acting as B. Proposed Same-Day Settling Service FICC believes that providing optionality would allow Repo Brokers and their CCP. As proposed in the Advance FICC states that its members have clients to determine whether a Repo Notice, FICC would act as CCP with expressed an interest in FICC acting as Broker should participate in the Same- respect to both the Start and End Legs CCP for the Start Leg of same-day Day Settling Service.24 For participating of a same-day starting repo, regardless of 21 starting repos. In the Advance Notice, Repo Brokers, FICC would no longer the timing of the respective scheduled FICC proposes to modify its Rules to assume responsibility for a failed Start settlement dates. include the Start Leg of same-day Leg because FICC would already be starting repos in the risk management, 3. Settlement at Contract Value or acting as CCP for the Start Leg upon System Value novation, guarantee, and settlement Trade Comparison. services of the DVP Service (the ‘‘Same- For FICC’s members that are not Repo As mentioned above, netting in the Day Settling Service’’). Upon Trade Brokers, participation in the Same-Day DVP Service occurs the night before the Comparison, FICC would act as CCP for Settling Service would be mandatory. scheduled settlement date. Because the Start Leg of same-day starting repos, Unlike Repo Brokers, FICC’s individual settlement of Start Legs within the which would settle on the same members submit trade details with Same-Day Settling Service would occur on the same business day as Trade business day. FICC’s margin collection respect to their own side of a trade only, Comparison, such transactions would with respect to the trade would not such that Trade Comparison only occurs generally not be netted.29 Instead, FICC change from the current process. After after FICC validates the trade details would settle such transactions on a FICC’s novation, if the Start Leg were to submitted by both parties to the trade.25 trade-for-trade basis. Transactions that fail, the parties’ obligations to and from Accordingly, if one party to a same-day FICC settles on a trade-for-trade basis FICC would go through the netting starting repo could choose to opt out of (i.e., transactions that are not netted) process that evening, and FICC would the Same-Day Settling Service, FICC continue to apply the margin amounts settle at ‘‘Contract Value,’’ which means would not be able to act as CCP with collected with respect to the trade the dollar value at which the transaction equal and opposite settlement towards FICC’s risk management of the is to be settled on the scheduled obligations between the two parties. End Leg. settlement date.30 Transactions that FICC believes that the Same-Day Such trades would, therefore, need to settle on a future date (i.e., transactions Starting Service could increase settle outside of FICC as they do that are netted) settle at ‘‘System settlement efficiencies and decrease currently. However, unlike the clients of Value,’’ which includes accrued settlement risk because it would a Repo Broker, such members would not interest. For consistency with the eliminate the movement of securities know in advance whether any given foregoing, FICC proposes to clarify the between members by centralizing the Start Leg would settle with FICC as CCP Rules with respect to the Same-Day settlement of the Start Leg of same-day or bilaterally outside of FICC. By Settling Service to reflect that any leg of starting repos with FICC.22 Moreover, requiring such members to participate a DVP repo to be settled on a trade-for- for same-day starting repos submitted by in the Same-Day Settling Service, trade basis would settle at Contract Repo Brokers, the Same-Day Settling members would have certainty that their Value, whereas any leg to be settled on Service would remove the Repo Broker Compared Trades would settle with a future date would settle at System from the settlement process by FICC acting as CCP. Value.31 eliminating the multiple bilateral 2. As-Of Trades securities movements involved in the 27 See Notice of Filing, supra note 4 at 85745. For purposes of the Advance Notice, settlement of the Start Leg. 28 Id. same-day starting repos would include 29 The Start Leg of same-day starting repos would 1. Voluntary for Repo Brokers; As-Of Trades,26 in which a member be netted in the limited scenario of a brokered repo Mandatory for Other Members submits a DVP repo for comparison on settlement fail on the scheduled settlement date. the business day after the scheduled See supra note 8; Notice of Filing, supra note 4 at As proposed in the Advance Notice, 85744. participation in the proposed Same-Day settlement date for the Start Leg, and the 30 See Rule 1—Definitions, supra note 6. Settling Service would be voluntary for End Leg is the current business day or 31 For example, for an overnight repo that is an Repo Brokers. Repo Brokers often thereafter. FICC states that members As-Of Trade, both legs would settle at Contract occasionally submit As-Of Trades due to Value because both would settle on the date of Trade Comparison and therefore would not be 19 See Section 5, Rule 19—Special Provisions for netted. For an overnight repo that is a same-day 23 Brokered Repo Transactions, supra note 6. See Notice of Filing, supra note 4 at 85746. starting repo, the Start Leg would settle on the date 20 See Notice of Filing, supra note 4 at 85744. 24 Id. of Trade Comparison at Contract Value, whereas the 21 Id. 25 See Rule 6A—Bilateral Comparison, supra note End Leg would be netted that evening and settle the 22 See Notice of Filing, supra note 4 at 85744, 49– 6. following business day at System Value. For an 50. 26 See Rule 1, supra note 6. overnight repo that is forward starting (i.e., both

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4. Late-Day Compared Trades that would be covered by the Same-Day FICC’s intraday funds-only settlement FICC states that members occasionally Settling Service. FICC proposes to (‘‘FOS’’) process. Therefore, the execute same-day starting repos after the modify the definitions of ‘‘Deliver proposed Pair-Off Service would enable close of the Fedwire Securities Service Obligation’’ and ‘‘Receive Obligation’’ to participating members to settle their (‘‘Fedwire’’), which is the service that include references to Same-Day Settling obligations on the day they arise, rather members generally use for settling Trades. FICC proposes to modify the than continuing to the next day as bilateral securities obligations.32 definitions of ‘‘Settlement Value’’ and unsettled failed obligations, as they Currently, such trades settle bilaterally ‘‘System Value’’ to contemplate that would under the current practice. Failed between the parties outside of FICC, Same-Day Settling Trades could settle at obligations that remain unsettled provided that both parties use the same Contract Value or System Value, overnight present market risk exposure clearing bank for settlement. In the depending on the circumstances of the to both FICC and the parties to such Advance Notice, FICC proposes to trade, as described above. trades. FICC believes that by enabling FICC proposes to incorporate Same- include such late-day trades in the the earlier settlement of a member’s Day Settling Trades into the existing Same-Day Settling Service (i.e., FICC offsetting obligations, the proposed Pair- Rule provisions governing the proposes to act as CCP for the Start Leg) Off Service could reduce such overnight Comparison System and Netting 35 on a reasonable efforts basis, meaning market risk. System. FICC proposes to add Rule FICC proposes to start the Pair-Off that FICC would attempt to contact the provisions addressing eligibility parties to the trade and FICC’s clearing Service at approximately 3:32 p.m., and requirements for Same-Day Settling provide FOS banks with their intraday bank to confirm agreement to settle the Trades to qualify for FICC’s novation 33 net FOS figures by 4:00 p.m. for trade. and settlement guarantee. FICC Specifically, for members that clear at acknowledgement by 4:30 p.m. proposes to incorporate Same-Day FICC’s clearing bank, FICC would Accordingly, FICC proposes to change Settling Trades into the Rule provisions attempt to settle any same-day starting the timing of FOS processing from the governing how parties satisfy their repos that are compared between 3:01 current time of 3:15 p.m. to 4:30 p.m. to obligations to FICC, including trades p.m. and 5:00 p.m., provided that (1) enable FICC to settle any net money that become uncompared or canceled. FICC is able to contact the parties to the differences that would arise from the FICC proposes to incorporate Same-Day trade and FICC’s clearing bank, and (2) proposed Pair-Off Service. Settling Trades into the Rule provisions the parties and FICC’s clearing bank dealing with settlement fails. Finally, II. Discussion and Commission agree to settle the trade. For members FICC proposes to include appropriate Findings that do not clear at FICC’s clearing bank, cross-references to ensure that various FICC proposes to attempt to settle, on a Although the Clearing Supervision Rule provisions related to general reasonable efforts basis, same-day Act does not specify a standard of securities settlement apply to Same-Day starting repos that are compared during review for an advance notice, the stated Settling Trades. the Fedwire reversal period between purpose of the Clearing Supervision Act 3:01 p.m. and 3:30 p.m., provided that C. Proposed Pair-Off Service is instructive: To mitigate systemic risk in the financial system and promote (1) FICC is able to contact FICC’s Settlement fails occur because one financial stability by, among other clearing bank and the parties to the party does not have inventory to settle things, promoting uniform risk trade, (2) FICC’s clearing bank and the with the other party on the scheduled management standards for SIFMUs and parties to the trade confirm agreement to settlement date. Currently, a member’s strengthening the liquidity of SIFMUs.36 settle the trade, and (3) FICC’s clearing obligations that remain unsettled when bank, the member’s clearing bank, and the Fedwire closes go through FICC’s Section 805(a)(2) of the Clearing the Federal Reserve Bank of New York overnight netting system for settlement Supervision Act authorizes the each permit settlement of the trade. the following business day, and the Commission to prescribe regulations containing risk management standards 5. Other Changes to FICC’s Rules To member is subject to FICC’s fails charge.34 In a scenario where a member for the payment, clearing, and Incorporate the Same-Day Settling settlement activities of designated Service has offsetting unsettled failed obligations in the same security (i.e., clearing entities engaged in designated In the Advance Notice, FICC proposes separate failed obligations to both activities for which the Commission is changes to several Rule provisions to 37 deliver and receive the same security) the supervisory agency. Section 805(b) ensure the relevant applicability of such after the close of the Fedwire, those of the Clearing Supervision Act provisions to the Same-Day Settling obligations currently go through the provides the following objectives and Service. FICC proposes to add a newly overnight netting system for settlement principles for the Commission’s risk defined term ‘‘Same-Day Settling Trade’’ management standards prescribed under the following day. 38 to capture the universe of DVP repos In the Advance Notice, FICC proposes Section 805(a): • an optional service for members To promote robust risk legs would settle on dates in the future), both legs whereby FICC would pair-off a management; would be subject to netting and settle at System • member’s offsetting failed securities to promote safety and soundness; Value. Notice of Filing, supra note 4 at 85746. • 32 The Fedwire is a service provided by the settlement obligations each day, to reduce systemic risks; and Federal Reserve Banks that includes settlement and beginning at 3:32 p.m. (shortly after the • to support the stability of the transfer of DVP securities transactions. The Fedwire Fedwire closes) until 4:00 p.m. (the broader financial system. operates daily from 8:30 a.m. to 3:30 p.m. (All times herein are Eastern Time.) See Fedwire and National ‘‘Pair-Off Service’’). Additionally, the Section 805(c) provides, in addition, Securities Service, Federal Reserve Bank of New member would receive either a debit or that the Commission’s risk management York (March 2015), available at https:// credit, as applicable, to account for any standards may address such areas as www.newyorkfed.org/aboutthefed/fedpoint/ difference in the settlement value of its fed43.html; Fedwire Securities Service, Board of Governors of the Federal Reserve System (July 31, deliver and receive obligations as part of 35 See Notice of Filing, supra note 4 at 85749–50. 2014), available at https://www.federalreserve.gov/ 36 See 12 U.S.C. 5461(b). paymentsystems/fedsecs_about.htm. 34 See Section 14, Rule 11—Netting System, supra 37 12 U.S.C. 5464(a)(2). 33 See Notice of Filing, supra note 4 at 85748. note 6. 38 12 U.S.C. 5464(b).

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risk management and default policies to the CCP that a member’s positions preventing the spread of settlement fails and procedures, among others areas.39 and other resources that the CCP holds to other market participants, the Same- The Commission has adopted risk (generally, the member’s margin) Day Settling Service also could help management standards under Section decline in market value as the CCP reduce systemic risk and support the 805(a)(2) of the Clearing Supervision considers whether and how it might stability of the broader financial system. Act and Section 17A of the Exchange liquidate, transfer, or otherwise dispose Additionally, as discussed above in Act (the ‘‘Clearing Agency Rules’’).40 of such assets to minimize losses. Section I.A., trades facilitated by a Repo The Clearing Agency Rules require, Settlement fails can also affect the Broker that settle outside of FICC among other things, each covered amount of liquidity risk a CCP may need require multiple bilateral securities clearing agency to establish, implement, to bear for purposes of settling an movements between the parties to the maintain, and enforce written policies unsettled trade because CCPs may rely trade and the Repo Broker. The greater and procedures that are reasonably on incoming payments from some the number of bilateral securities designed to meet certain minimum members to facilitate payments to other movements involved in trade requirements for its operations and risk members. For FICC’s members, a settlement, the greater the potential for management practices on an ongoing settlement fail on a securities delivery operational risk resulting in settlement basis.41 As such, it is appropriate for the obligation causes the non-failing party fails. FICC currently manages the risk of Commission to review advance notices to withhold payment while settlement is a failed Start Leg for a brokered repo by against the Clearing Agency Rules and rescheduled for the following business assuming responsibility for trade the objectives and principles of these day and until the trade ultimately settlement on the evening of the original risk management standards as described settles. In the interim, the non-failing scheduled settlement date. While this in Section 805(b) of the Clearing party cannot use the securities, which it approach decreases further settlement Supervision Act. As discussed below, may have already committed to deliver risk, it neither prevents the original the Commission believes the proposals in subsequent trading activity, giving settlement fail nor does it eliminate the in the Advance Notice are consistent rise to the risk of further settlement multiple bilateral securities movements with the objectives and principles fails. Also, the failing party does not for settling the Start Leg until after a described in Section 805(b) of the have use of the cash proceeds from the settlement fail. For participating Repo Clearing Supervision Act 42 and in the trade. Settlement fails can, therefore, Brokers, the Same-Day Settling Service Clearing Agency Rules, in particular undermine the liquidity of a well- would eliminate the bilateral securities Rule 17Ad–22(e)(21).43 functioning market, and a member movements and the associated risk of settlement fails because FICC would A. Consistency With Section 805(b) of default could lead to the default of other novate and guarantee settlement of the the Clearing Supervision Act members and market participants as well. Settlement fails can therefore be a Start Leg upon Trade Comparison. As a The Commission believes that the source of systemic risk and instability to result, the Commission believes that the Advance Notice is consistent with the the broader market. Same-Day Settling Service could stated objectives and principles of As described above in Section I.A., improve efficiency in the settlement Section 805(b) of the Clearing FICC currently acts as CCP for only the process for brokered DVP repos and Supervision Act because the changes End Leg of a same-day starting DVP thereby reduce the risk of settlement proposed in the Advance Notice are repo. The Start Leg currently settles fails. consistent with reducing systemic risks, bilaterally outside of FICC between the Finally, as discussed above in Section supporting the stability of the broader parties to the trade. Trades that settle I.C., the proposed Pair-Off Service financial system, promoting robust risk bilaterally outside of FICC are generally would enable participating members to management, and promoting safety and exposed to more operational risk and settle their offsetting failed securities soundness.44 consequently may result in more settlement obligations each day after the The Commission believes that the settlement fails than trades which are Fedwire closes. FICC’s current process proposals in the Advance Notice are novated and risk-managed by FICC in its is for such failed obligations to go consistent with the principles of role as CCP.45 through the evening netting system, reducing systemic risk and supporting By centralizing settlement of the Start with settlement rescheduled for the the stability of the broader financial Leg of same-day starting repos, the following business day. The proposed system. When a CCP novates a trade and proposal would eliminate the current Pair-Off Service represents a more takes offsetting and guaranteed bilateral settlement of securities efficient process for resolving failed positions between the two original between the parties. Once the Start Leg settlement obligations because parties to the trade, the length of time is subject to FICC’s settlement settlement would occur on the day they from novation to trade settlement may guarantee, a settlement fail would be arise, rather than continuing as affect the CCP’s exposure to credit, contained between the failing party and settlement fails to the next business day. market, and liquidity risk. For example, FICC. Even if the start leg were to fail, Moreover, failed obligations that remain settlement fails extend the time to FICC’s margin collection and other risk unsettled overnight present market risk settlement and can thereby present risk mitigation measures would be in place exposure to both FICC and the parties to to protect the non-failing party such trades. By enabling the earlier 39 12 U.S.C. 5464(c). originally on the other side of the trade. settlement of a member’s offsetting 40 17 CFR 240.17Ad–22. See Securities Exchange The Same-Day Settling Service would obligations, the proposed Pair-Off Act Release No. 68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7–08–11). See also thereby likely reduce the spread of Service could reduce such overnight Securities Exchange Act Release No. 78961 settlement fails to other market market risk. (September 28, 2016), 81 FR 70786 (October 13, participants. As a result, the For the reasons discussed above, the 2016) (S7–03–14) (‘‘Covered Clearing Agency Commission believes that the Same-Day Commission believes that the proposals Standards’’). FICC is a ‘‘covered clearing agency’’ as defined in Rule 17Ad–22(a)(5). Settling Service could reduce the risk in the Advance Notice could minimize 41 Id. associated with settlement fails in the the occurrence of settlement fails, 42 12 U.S.C. 5464(b). DVP repo market. More broadly, by reduce associated risks, and improve 43 17 CFR 240.17Ad–22(e)(21)(i), (ii), and (iii). settlement efficiency. Accordingly, the 44 12 U.S.C. 5464(b). 45 See supra note 18. Commission believes that the proposals

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in the Advance Notice are consistent be efficient and effective in meeting the resolving failed settlement obligations with the objectives of reducing systemic requirements of its participants and the because settlement would occur on the risks and supporting the stability of the markets it serves, and have the covered day the obligations arise, rather than broader financial system.46 clearing agency’s management regularly continuing as settlement fails to the next The Commission further believes that review the efficiency and effectiveness business day. As discussed above, failed FICC’s proposals in the Advance Notice of its (i) clearing and settlement obligations that remain unsettled are consistent with the objectives of arrangements, (ii) operating structure, overnight present market risk exposure promoting robust risk management and including risk management policies, to both FICC and the parties to such promoting safety and soundness. First, procedures and systems, and (iii) scope trades. By enabling earlier settlement of as discussed above in Section I.A., FICC of products cleared or settled.49 a member’s offsetting obligations, the currently acts as CCP for the End Leg of As discussed above in Section I.B, the proposed Pair-Off Service could reduce same-day starting repos. In that role, proposed Same-Day Settling Service such overnight market risk. FICC risk manages, novates, and would eliminate bilateral settlements Accordingly, the Commission believes guarantees settlement of such trades. between the parties to the Start Leg of that adopting the proposed Pair-Off The proposed Same-Day Settling a DVP repo and allow FICC to settle Service would be consistent with Rule Service would expand FICC’s role as both the Start and End Legs of a DVP 17Ad–22(e)(21) 52 because the proposal CCP to include the Start Leg of same- Repo. In that regard, the proposed would enable the earlier settlement of a day starting repos, thereby applying Same-Day Settling Service represents a member’s offsetting failed obligations in FICC’s existing risk management more efficient and effective settlement a manner designed to be efficient and standards to such trades. The process than FICC’s current process, effective in reducing overnight market Commission believes that extending which generally includes bilateral risk to the benefit of FICC’s members. FICC’s existing risk management settlement of the Start Leg. FICC III. Conclusion standards in acting as CCP for the Start designed the Same-Day Settling Service Leg of same-day settling repos is in response to requests from its It is therefore noticed, pursuant to consistent with the objective of members, to mitigate the operational Section 806(e)(1)(I) of the Clearing promoting robust risk management.47 risk that can result in settlement fails. Supervision Act, that the Commission Additionally, as discussed above in As discussed above, if not contained, does not object to Advance Notice (SR– Section I.C., the proposed Pair-Off settlement fails can spread to other FICC–2020–803) and that FICC is Service would enable participating market participants and undermine the authorized to implement the proposed members to settle their offsetting failed liquidity of a well-functioning market.50 change as of the date of this notice or securities settlement obligations each In contrast, reducing the occurrence of the date of an order by the Commission day, shortly after the Fedwire closes. settlement fails (and their resultant approving proposed rule change SR– FICC’s current process is for such failed effects) would strengthen broader FICC–2020–015, whichever is later. obligations to go through the evening market liquidity. Therefore, by reducing By the Commission. netting system, with settlement the risk of settlement fails, the proposal J. Matthew DeLesDernier, rescheduled for the following business would benefit FICC’s members when it Assistant Secretary. day. The proposed Pair-Off Service results in transactions that settle on time [FR Doc. 2021–01324 Filed 1–21–21; 8:45 am] represents a more efficient process for that might have otherwise failed, with BILLING CODE 8011–01–P resolving failed settlement obligations lower overall transaction costs. because settlement would occur on the Accordingly, the Commission believes day they arise, rather than continuing as that adopting the proposed Same-Day DEPARTMENT OF STATE settlement fails to the next business day. Settling Service would be consistent As discussed above, failed obligations with Rule 17Ad–22(e)(21) 51 because the [Public Notice: 11330] that remain unsettled overnight present proposal would broaden the scope of market risk exposure to both FICC and the DVP Service to include the Start Leg Notice of Department of State the parties to such trades. By enabling of same-day starting repos in a manner Sanctions Actions on Hong Kong the earlier settlement of a member’s designed to be efficient and effective in Normalization reducing settlement fails to the benefit offsetting obligations for those members SUMMARY: The Secretary of State has of FICC’s members and the broader DVP who choose to use the service, the imposed sanctions on fourteen repo market. proposed Pair-Off Service could reduce individuals pursuant to Executive Order Moreover, as discussed above in such overnight market risk and protect 13936, the President’s Executive Order Section I.C, the proposed Pair-Off FICC from sustaining associated losses. on Hong Kong Normalization. Accordingly, the Commission believes Service would enable participating members to settle their offsetting failed DATES: The Secretary of State’s that adopting the proposed Pair-Off determination regarding the fourteen Service is consistent with the objectives securities settlement obligations each day, shortly after the Fedwire closes. individuals identified in the of promoting robust risk management SUPPLEMENTARY INFORMATION section and promoting safety and soundness.48 Under FICC’s current process, such failed obligations go through the was effective on December 7, 2020. B. Consistency With Rule 17Ad– evening netting system, with settlement FOR FURTHER INFORMATION CONTACT: 22(e)(21) rescheduled for the following business Taylor Ruggles, Director, Office of Rule 17Ad–22(e)(21) under the day. The proposed Pair-Off Service Economic Sanctions Policy and Exchange Act requires each covered represents a more efficient process for Implementation, Bureau of Economic clearing agency to establish, implement, and Business Affairs, Department of maintain, and enforce written policies 49 17 CFR 240.17Ad–22(e)(21). State, Washington, DC 20520, tel.: (202) and procedures reasonably designed to 50 Additionally, when a FICC member fails to 647–7677, email: [email protected]. meet its settlement obligations, the member incurs SUPPLEMENTARY INFORMATION: Pursuant FICC’s fails charge, which could further impact the 46 Id. member’s liquidity. See Section 14, Rule 11— to Section 4(a)(iii)(A) of E.O. 13936 the 47 Id. Netting System, supra note 6. 48 Id. 51 17 CFR 240.17Ad–22(e)(21). 52 Id.

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Secretary of State, in consultation with FOR FURTHER INFORMATION CONTACT: persons are generally prohibited from the Secretary of the Treasury, or the Taylor Ruggles, Director, Office of engaging in transactions with them. Secretary of the Treasury, in Economic Sanctions Policy and Peter Haas, consultation with the Secretary of State Implementation, Bureau of Economic may authorize blocking of all property Principal Deputy Assistant Secretary, Bureau and Business Affairs, Department of of Economic and Business Affairs, or interests in property that are in the State, Washington, DC 20520, tel.: (202) Department of State. United States, that hereafter come 647 7677, email: [email protected]. within the United States, or that are in [FR Doc. 2021–01274 Filed 1–21–21; 8:45 am] or hereafter come within the possession SUPPLEMENTARY INFORMATION: Pursuant BILLING CODE 4710–AE–P or control of any United States person, to Section 4(a)(iii)(A) of E.O. 13936 the Secretary of State, in consultation with of any foreign person upon determining DEPARTMENT OF STATE that the person is or has been a leader the Secretary of the Treasury, or the or official of any entity, including any Secretary of the Treasury, in [Public Notice: 11331] government entity, that has engaged in, consultation with the Secretary of State or whose members have engaged in, may authorize blocking of all property Imposition of Nonproliferation developing, adopting, or implementing or interests in property that are in the Measures Against Foreign Persons, Including a Ban on U.S. Government the Law of the People’s Republic of United States, that hereafter come Procurement China on Safeguarding National within the United States, or that are in Security in the Hong Kong or hereafter come within the possession AGENCY: Bureau of International Administrative Region (the ‘‘National or control of any United States person, Security and Nonproliferation, Security Law’’). of any foreign person upon determining Department of State. The Secretary of State has that the person is or has been a leader ACTION: Notice. determined, pursuant to section or official of any entity, including any 4(a)(iii)(A) of E.O. 13936, that Wang government entity, that has engaged in, SUMMARY: A determination has been Chen, Cao Jianming, Zhang Chunxian, or whose members have engaged in, made that a number of foreign persons Shen Yueyue, Ji Bingxuan, Arken have engaged in activities that warrant developing, adopting, or implementing Imirbaki, Wan Exiang, Chen Du, Wang the imposition of measures pursuant to the Law of the People’s Republic of Dongming, Padma Choling, Ding the , North Korea, and Syria Zhongli, Hao Mingjin, Cai Dafeng, and China on Safeguarding National Nonproliferation Act. The Act provides Wu Weihua, are or have been leaders or Security in the Hong Kong for penalties on foreign entities and officials of an entity, including any Administrative Region (the ‘‘National individuals for the transfer to or government entity, that has engaged in, Security Law’’), or in actions or policies acquisition from Iran since January 1, or whose members have engaged in, that threaten the peace, security, 1999; the transfer to or acquisition from developing, adopting, or implementing, stability, or autonomy of Hong Kong. Syria since January 1, 2005; or the the National Security Law, and has The Secretary of State has transfer to or acquisition from North approved the Department of Treasury determined, pursuant to section Korea since January 1, 2006, of goods, adding them to the Specially Designated 4(a)(iii)(A) of E.O. 13936, that Li services, or technology controlled under and Blocked Persons List (SDN List). All Jiangzhou, Edwina Lau, and Steve Li multilateral control lists (Missile property and interests in property Kwai-Wah are or have been leaders or Technology Control Regime, subject to U.S. jurisdiction of these officials of entities, including any Group, Chemical Weapons Convention, individuals are blocked, and U.S. government entity, that have engaged in, Nuclear Suppliers Group, Wassenaar persons are generally prohibited from or whose members have engaged in, Arrangement) or otherwise having the engaging in transactions with them. developing, adopting, or implementing potential to make a material contribution to the development of Peter Haas, the National Security Law, and weapons of mass destruction (WMD) or approved the Department of the Principal Deputy Assistant Secretary, Bureau cruise or ballistic missile systems. The of Economic and Business Affairs, Treasury adding them to the Specially Department of State. latter category includes (a) items of the Designated Nationals and Blocked same kind as those on multilateral lists [FR Doc. 2021–01276 Filed 1–21–21; 8:45 am] Person List (SDN List). All property and but falling below the control list BILLING CODE 4710–AE–P interests in property subject to U.S. parameters when it is determined that jurisdiction of these individuals are such items have the potential of making blocked, and U.S. persons are generally DEPARTMENT OF STATE a material contribution to WMD or prohibited from engaging in transactions cruise or ballistic missile systems, (b) [Public Notice 11329] with them. items on U.S. national control lists for WMD/missile reasons that are not on Notice of Department of State The Secretary of State has determined that Deng Zhonghua is or has been a multilateral lists, and (c) other items Sanctions Actions on Hong Kong with the potential of making such a Normalization. leader or official of an entity, including any government entity, that has engaged material contribution when added SUMMARY: The Secretary of State has in, or whose members have engaged in, through case-by-case decisions. imposed sanctions on four individuals actions or policies that threaten the DATES: Effective January 13, 2021. pursuant to Executive Order 13936, the peace, security, stability or autonomy of FOR FURTHER INFORMATION CONTACT: On President’s Executive Order on Hong Hong Kong, pursuant to section general issues: Pam Durham, Office of Kong Normalization. 4(a)(iii)(A) of E.O. 13936, and approved Missile, Biological, and Chemical DATES: The Secretary of State’s OFAC adding him to the SDN List. All Nonproliferation, Bureau of determination regarding the four property and interests in property International Security and individuals identified in the subject to U.S. jurisdiction of these Nonproliferation, Department of State, SUPPLEMENTARY INFORMATION section individuals are blocked, and U.S. Telephone (202) 647–4930. For U.S. was effective on November 9, 2020. Government procurement ban issues:

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Eric Moore, Office of the Procurement DEPARTMENT OF STATE Norfolk & Western Railway—Trackage Executive, Department of State, Rights—Burlington Northern, Inc., 354 [Public Notice: 11332] Telephone: (703) 875–4079. I.C.C. 605 (1978), as modified in SUPPLEMENTARY INFORMATION: On Republic of Cuba Designation as a Mendocino Coast Railway—Lease & January 13, 2021, the U.S. Government State Sponsor of Terrorism (SST) Operate—California Western Railroad, applied the measures authorized in 360 I.C.C. 653 (1980), and any Section 3 of the Iran, North Korea, and In accordance with section 6(j)(1) of employees affected by the Syria Nonproliferation Act (Pub. L. 109– the Export Administration Act of 1979 discontinuance of those trackage rights 353) against the following foreign (50 U.S.C. App. 2405(j)), and as will be protected by the conditions set persons identified in the report continued in effect by Executive Order out in Oregon Short Line Railroad— submitted pursuant to Section 2(a) of 13222 of August 17,2001, section Abandonment Portion Goshen Branch the Act: 620A(a) of the Foreign Assistance Act of Between Firth & Ammon, in Bingham & Ningbo Vet Energy Technology Co., 1961, Public Law 87–195, as amended Bonneville Counties, Idaho, 360 I.C.C. Ltd. (China) and any successor, sub- (22 U.S.C. 2371(c)), and section 40(f) of 91 (1979). unit, or subsidiary thereof; the Arms Export Control Act, Public If the verified notice contains false or Ningbo Zhongjun International Trade Law 90–629, as amended (22U.S.C. misleading information, the exemption Co., Ltd. (NBZJ) (China) and any 2780(f), I hereby determine that the is void ab initio. Petitions to revoke the successor, sub-unit, or subsidiary Republic of Cuba has repeatedly exemption under 49 U.S.C. 10502(d) thereof; provided support for acts of may be filed at any time. The filing of Rim Ryong Nam [DPRK Munitions international terrorism. a petition to revoke will not Industry Department (MID) Official] This notice shall be published in the automatically stay the effectiveness of (North Korean individual in China). Federal Register. the exemption. Petitions for stay must Accordingly, pursuant to Section 3 of Dated: January 12, 2021. be filed no later than January 29, 2021 the Act, the following measures are Michael R. Pompeo, (at least seven days before the exemption becomes effective). imposed on these persons: Secretary of State. All pleadings, referring to Docket No. 1. No department or agency of the [FR Doc. 2021–01416 Filed 1–21–21; 8:45 am] FD 36480, should be filed with the U.S. government may procure or enter BILLING CODE 4710–AD–P Surface Transportation Board via e- into any contract for the procurement of filing on the Board’s website. In any goods, technology, or services from addition, a copy of each pleading must these foreign persons, except to the SURFACE TRANSPORTATION BOARD be served on UP’s representative, Jeremy extent that the Secretary of State Berman, Union Pacific Railroad otherwise may determine; [Docket No. FD 36480] Company, 1400 Douglas Street, Stop 2. No department or agency of the Union Pacific Railroad Company— 1580, Omaha, NE 68179. U.S. government may provide any Temporary Trackage Rights According to UP, this action is assistance to these foreign persons, and Exemption—BNSF Railway Company categorically excluded from these persons shall not be eligible to environmental review under 49 CFR participate in any assistance program of Union Pacific Railroad Company 1105.6(c) and from historic preservation the U.S. government, except to the (UP), a Class I railroad, has filed a reporting requirements under 49 CFR extent that the Secretary of State verified notice of exemption under 49 1105.8(b). otherwise may determine; CFR 1180.2(d)(8) for the acquisition of Board decisions and notices are 3. No U.S. government sales to these temporary overhead trackage rights over available at www.stb.gov. foreign persons of any item on the an approximately 51.7-mile rail line of United States Munitions List are BNSF Railway Company (BNSF) Decided: January 14, 2021. permitted, and all sales to these persons between milepost 579.3 on BNSF’s By the Board, Allison C. Davis, Director, of any defense articles, defense services, Creek Subdivision near Mill Creek, Office of Proceedings. or design and construction services Okla., and milepost 631.0 on BNSF’s Brendetta Jones, under the Arms Export Control Act are Madill Subdivision near Joe Junction, Clearance Clerk. terminated; and Tex., pursuant to the terms of a written [FR Doc. 2021–01355 Filed 1–21–21; 8:45 am] 4. No new individual licenses shall be temporary trackage rights agreement BILLING CODE 4915–01–P granted for the transfer to these foreign dated December 31, 2020 (Agreement).1 persons of items the export of which is UP states that the sole purpose of the controlled under the Export Control temporary trackage rights is to allow UP SURFACE TRANSPORTATION BOARD Reform Act of 2018 or the Export to move loaded and empty unit ballast [Docket No. FD 36466] Administration Regulations, and any trains, which will be used solely for UP existing such licenses are suspended. maintenance-of-way projects. UP states San Joaquin Valley Railroad Co.— These measures shall be implemented that the temporary trackage rights will Lease and Operation Exemption by the responsible departments and expire on December 31, 2021. Including Interchange Commitment— agencies of the U.S. government and The transaction may be consummated Union Pacific Railroad Company will remain in place for two years from on or after February 7, 2021, the the effective date, except to the extent effective date of the exemption (30 days San Joaquin Valley Railroad Co. that the Secretary of State may after the verified notice was filed). (SJVR), a Class III railroad, filed a subsequently determine otherwise. As a condition to this exemption, any verified notice of exemption under 49 employees affected by the acquisition of CFR 1150.41 to continue to lease from Gonzalo O. Suarez, the temporary trackage rights will be Union Pacific Railroad Company (UP) Acting Deputy Assistant Secretary, protected by the conditions imposed in and operate 101.5 miles of rail lines (the International Security and Nonproliferation. Lines), specifically: (1) The Westside [FR Doc. 2021–01316 Filed 1–21–21; 8:45 am] 1 A copy of the Agreement was filed with the Branch (Lower Los Banos) from Oxalis, BILLING CODE 4710–27–P verified notice. Cal., milepost 159.9 to milepost 181.9,

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at or near Ingle, Cal.; (2) the Westside date of the exemption in its separate I. Proceedings in the Investigation Branch (Lower Los Banos) from Ingle, decision on the waiver request. milepost 181.9 to Fresno, Cal., at If the verified notice contains false or On October 2, 2020, the U.S. Trade milepost 207.0 and including the misleading information, the exemption Representative initiated an investigation Riverdale Branch from Ingle, milepost is void ab initio. Petitions to revoke the of Vietnam’s acts, policies, and practices 181.8 to the end of the track at or near exemption under 49 U.S.C. 10502(d) related to the valuation of its currency milepost 206.2 at Burrell, Cal.; (3) the may be filed at any time. The filing of pursuant to section 302(b)(1)(A) of the Buttonwillow Branch from Kern Jct., a petition to revoke will not Trade Act of 1974, as amended (the Cal., milepost 316.3 to Gosford, Cal., automatically stay the effectiveness of Trade Act). See 85 FR 63637 (Oct. 8, milepost 322.6; and (4) the the exemption. Petitions for stay must 2020) (notice of initiation). In the notice Buttonwillow Branch from Gosford, be filed no later than January 29, 2021. of initiation, USTR explained that the milepost 322.6 to the end of the track at All pleadings, referring to Docket No. Government of Vietnam, through the or near Buttonwillow, Cal., milepost FD 36466, should be filed with the State Bank of Vietnam, tightly manages 346.3. Surface Transportation Board via e- the value of its currency, and that the According to SJVR, it has entered into filing on the Board’s website. In State Bank of Vietnam’s management of a lease with UP (the Lease) to replace a addition, a copy of each pleading must Vietnam’s currency is closely tied to the 1994 lease (the Original Lease) between be served on SJVR’s representative, Eric U.S. dollar. USTR also explained that UP’s predecessor company, Southern M. Hocky, Clark Hill PLC, Two available analysis indicated that Pacific Transportation Company, and Commerce Square, 2001 Market St., Vietnam’s currency had been SJVR, as an assignee of Port Railroads, Suite 2620, Philadelphia, PA 19103. undervalued over the past three years, Inc., and that SJVR is currently the According to SJVR, this action is and that available evidence indicated operator of the Lines under the Original categorically excluded from that Vietnam, through the State Bank of Lease.1 SJVR states that it entered the environmental review under 49 CFR Vietnam, actively intervened in the Lease with UPRR on December 28, 2020, 1105.6(c) and from historic preservation exchange market, which contributed to to further extend the term of the reporting requirements under 49 CFR the dong’s undervaluation in 2019. 1105.8(b). Original Lease and make other The notice of initiation solicited Board decisions and notices are commercial revisions and that SJVR will written comments regarding various continue to be the operator after the available at www.stb.gov. issues in the investigation. Interested transaction. Decided: January 15, 2021. persons filed 66 written submissions in SJVR certifies that the Lease contains By the Board, Allison C. Davis, Director, response to the notice of initiation. an interchange commitment.2 Office of Proceedings. In a notice published on November Accordingly, SJVR has provided Kenyatta Clay, 25, 2020, USTR announced further additional information regarding the Clearance Clerk. interchange commitment, as required by opportunities for public input. See 85 [FR Doc. 2021–01356 Filed 1–21–21; 8:45 am] 49 CFR 1150.43(h). FR 75397 (Nov. 25, 2020) (hearing BILLING CODE 4915–01–P SJVR certifies that its projected notice). In the hearing notice, USTR revenues as a result of the transaction announced that the interagency Section will not exceed those that would qualify 301 Committee would hold a virtual it as a Class III carrier but also certifies OFFICE OF THE UNITED STATES public hearing on December 29, 2020, that its revenues currently exceed $5 TRADE REPRESENTATIVE and that interested persons could million. Pursuant to 49 CFR 1150.42(e), [Docket Number USTR–2020–0037] submit post-hearing comments, if a carrier’s projected annual revenues addressed to any matter raised in the will exceed $5 million, it must, at least Notice of Determination Pursuant to hearing testimony or prior written 60 days before the exemption becomes Section 301: Vietnam’s Acts, Policies, submissions, by January 7, 2021. In effective, post a notice of its intent to and Practices Related to Currency response to an inquiry from certain undertake the proposed transaction at Valuation interested persons, USTR confirmed the workplace of the employees on the that post-hearing comments may affected lines, serve a copy of the notice AGENCY: Office of the United States address the December 16, 2020, on the national offices of the labor Trade Representative (USTR). Department of the Treasury report on unions with employees on the affected ACTION: Notice. Macroeconomic and Foreign Exchange lines, and certify to the Board that it has Policies of Major Trading Partners of the SUMMARY: The U.S. Trade done so. However, SJVR’s verified United States. During the public Representative has determined that notice includes a request for waiver of hearing, 21 witnesses provided Vietnam’s acts, policies, and practices the 60-day advance labor notice testimony and responded to questions. related to currency valuation, including requirements. SJVR’s waiver request USTR received 18 written submissions excessive foreign exchange market will be addressed in a separate decision. following the hearing. The Board will establish the effective interventions and other related actions, taken in their totality, are unreasonable The written submissions are publicly and burden or restrict U.S. commerce, available on the docket in this 1 See Port R.Rs.—Lease & Operation Exemption— S. Pac. Transp. Co., FD 32457 (ICC served Mar. 14, and thus actionable under Section 301. investigation. A transcript of the public 1994) (authorizing lease of approximately 107.438 FOR FURTHER INFORMATION CONTACT: For hearing is available on the public docket miles of line); San Joaquin Valley R.R.—Corp. questions concerning the investigation, and is posted on USTR’s website. Family Transaction Exemption—Port R.Rs., FD 32906 (STB served May 3, 1996). According to the contact Michael T. Gagain, Assistant Under section 303 of the Trade Act, verified notice, the milepost designations differ General Counsel, 202–395–9529, or the U.S. Trade Representative requested slightly from the Original Lease, reflecting updated Marta M. Prado, Deputy Assistant U.S. consultations with the Government of mileposts on the Lines. Trade Representative for Southeast Asia Vietnam regarding the issues involved 2 A copy of the Lease with the interchange commitment was submitted under seal. See 49 CFR and the Pacific, 202–395–6216. in the investigation. Consultations were 1150.43(h)(1). SUPPLEMENTARY INFORMATION: held on December 23, 2020.

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II. Determination on the Acts, Policies, excessive foreign exchange market Timing of Grant Applications and Practices Under Investigation interventions and other related actions In accordance with the statutory Based on information obtained during burden or restrict U.S. commerce; and, requirement at 46 U.S.C. 54101(f)(1) that the investigation, and in consultation accordingly, applications must be submitted within with the Department of the Treasury 3. The acts, policies, and practices 60 days of the Consolidated and other agencies represented on the under investigation are actionable under Appropriations Act, 2021 (Pub. L. 116– Section 301 Committee, USTR has Section 301(b) of the Trade Act. 260, December 27, 2020), applications prepared and published a III. Further Proceedings must be received by MARAD by 5:00 comprehensive report on Vietnam’s p.m. EST on February 25, 2021. acts, policies, and practices related to Sections 301(b) and 304(a)(1)(B) of the Applications received later than this the undervaluation of its currency (the Trade Act provide that if the U.S. Trade time will not be considered. The Report). The Report, which is posted on Representative determines that an act, Administrator shall award grants under the USTR website at https://ustr.gov/ policy, or practice of a foreign country this section not later than 120 days after issue-areas/enforcement/section-301- is unreasonable or discriminatory and the date of the enactment of the investigations/section-301-vietnam, burdens or restricts U.S. commerce, the appropriations Act for the fiscal year includes a full discussion on whether U.S. Trade Representative shall concerned. the acts, policies, and practices under determine what action, if any, to take ADDRESSES: Grant Applications should investigation are actionable under under Section 301(b). These matters will be sent to the Associate Administrator section 301(b) of the Trade Act. The be addressed in subsequent proceedings for Business and Finance Development, Report supports a finding that Vietnam’s under Section 301. Room W21–318, Maritime acts, policies, and practices related to Administration, 1200 New Jersey currency valuation, including excessive Juan Millan, Avenue SE, Washington, DC 20590. foreign exchange market interventions Assistant U.S. Trade Representative for Only applicants who comply with all and other related actions, taken in their Monitoring and Enforcement, Office of the submission requirements described in totality, are unreasonable and burden or United States Trade Representative. this notice will be eligible for award. restrict U.S. commerce. [FR Doc. 2021–01352 Filed 1–21–21; 8:45 am] In consultation with the Department BILLING CODE 3290–F0–P FOR FURTHER INFORMATION CONTACT: For of the Treasury, based on the further information concerning this information obtained during the notice, please contact David M. Heller, investigation, and taking account of Director, Office of Shipyards and public comments and the advice of the DEPARTMENT OF TRANSPORTATION Marine Engineering, Maritime Section 301 Committee and advisory Administration, Room W21–318, 1200 committees, the U.S. Trade Maritime Administration New Jersey Avenue SE, Washington, DC Representative has made the following 20590; phone: (202) 366–5737; or fax: Small Shipyard Grant Program; (202) 366–6988. determination under sections 301(b) and Application Deadlines 304(a) of the Trade Act (19 U.S.C. SUPPLEMENTARY INFORMATION: Grants under MARAD’s Small Shipyard Grant 2411(b) and 2414(a)): As described in AGENCY: Maritime Administration, the Report, Vietnam’s acts, policies, and Department of Transportation. Program may not be used to construct practices related to currency valuation, buildings or other physical facilities or including excessive foreign exchange ACTION: Notice of Small Shipyard Grants to acquire land. Grant funds may be market interventions and other related Application Deadlines. used for maritime training programs to actions, taken in their totality, are foster employee skills and enhanced unreasonable and burden or restrict U.S. SUMMARY: Under the Small Shipyard productivity related to shipbuilding, commerce, and thus actionable under Grant Program, $19,600,000 is currently ship repair, and associated industries. Section 301(b) of the Trade Act. In available for grants to: (1) Make capital Grants for such training programs may particular: and related improvements to qualified only be awarded to ‘‘Eligible 1. Vietnam’s acts, policies, and shipyard facilities that will be effective Applicants’’ as described below, but practices with respect to currency in fostering efficiency, competitive training programs can be established valuation, including excessive foreign operations, and quality ship through vendors to such applicants. exchange market interventions and construction, repair, and Table of Contents other related actions, taken in their reconfiguration, and (2) provide training totality and as discussed in further for workers in shipbuilding, ship repair, A. Program Description detail in the Report, are unreasonable in and associated industries. This notice B. Federal Award Information light of U.S. and international norms announces the intention of the Maritime C. Eligibility Information that exchange rate policy should not be Administration (MARAD) to provide for D. Application and Submission Information E. Application Review Information undertaken to gain an unfair grants to small shipyards. Federal F. Federal Award Administration competitive advantage in international Assistance Listing Number: 20.814 Information trade, should not artificially enhance a (formerly known as the Catalog of G. Federal Awarding Agency Contacts country’s exports and restrict its imports Federal Domestic Assistance Number). H. Other Information in ways that do not reflect the Potential applicants are advised that it underlying competitiveness, should not is expected, based on experience, that A. Program Description prevent exchange rates from reflecting the number of applications will far The Small Shipyard Grant Program underlying economic and financial exceed the funds available and that only was authorized under Section 3501 of conditions, and should not prevent a small percentage of applications will the National Defense Authorization Act balance of payments adjustment; be funded. Historically, the program has for Fiscal Year 2020 (Pub. L. 116–92), 2. Vietnam’s acts, policies, and selected roughly 15–30 applications for codified at 46 U.S.C. 54101. The statute practices that contribute to funding with an average grant amount of authorizes the Maritime Administrator undervaluation of its currency through about $1 million. to provide assistance in the form of

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grants to make capital and related that are not expended by the recipient recipient’s share, must be incurred after improvements in small shipyards and to shall remain available to the the date of the grant agreement. provide training for workers in Administrator for use for grants under 4. Requirements for Products Produced shipbuilding, ship repair, and this program, either in the same or in the United States associated industries. Federal different fiscal year as this notice. Assistance Listing Number: 20.814 As expressed in Executive Orders (formerly known as the Catalog of C. Eligibility Information 13788 of April 18, 2017 and 13858 of Federal Domestic Assistance Number). To be selected for a Small Shipyard January 31, 2019, it is the policy of the The Consolidated Appropriations Act, Grant, an applicant must be an Eligible executive branch to maximize, 2021, appropriated $20,000,000 to the Applicant and the project must be an consistent with law, the use of goods, Small Shipyard Grant Program. Per 46 Eligible Project. products, and materials produced in the U.S.C. 54101, 2 percent of the funds United States in the terms and may be set aside for grant 1. Eligible Applicants conditions of Federal financial administration. Therefore, the total Section 54101, Title 46, United States assistance awards. Section 3507 of the amount available for grant awards is Code, provides that shipyards can apply National Defense Authorization Act for $19,600,000. The purpose of the for grants. The shipyard facility for Fiscal Year 2020 included a requirement Program is to foster efficiency, which a grant is sought must be in a for Small Shipyard Grantees to comply competitive operations, and quality ship single geographic location and may not with Buy America requirements, construction, repair, and reconfiguration have more than 1,200 production codified at 46 U.S.C. 54101(d)(2). in small shipyards across the United employees. The applicant must be the Subject to few exceptions, these States in addition to fostering employee operating company of the shipyard requirements state that no funds may be skills and enhanced productivity related facility. The shipyard facility must obligated by MARAD for this program to shipbuilding, ship repair, and construct, repair, or reconfigure vessels unless each product or material associated industries, and grants will be 40 feet in length or greater for purchased with these funds (including awarded to further this purpose. Award commercial or government use, or products and materials purchased by a recipients will be expected to comply construct, repair, or reconfigure vessels grant recipient), and including any with the performance goals and 100 feet in length or greater for non- commercially available off-the-shelf reporting requirements as outlined in commercial vessels. Refer to section D.5, item, is: the executed grant agreement, such as Funding Restrictions, for more (i) An unmanufactured article, the completion of actions of the capital information. material, or supply that has been mined and related improvement projects or or produced in the United States; or training projects completed. 2. Cost Sharing or Matching (ii) A manufactured article, material, B. Federal Award Information The Federal funds for any eligible or supply that has been manufactured in the United States substantially all from Under the Small Shipyard Grant project will not exceed 75 percent of the total cost of such project. The remaining articles, materials, or supplies mined, Program, $19,600,000 is available for produced, or manufactured in the grants for: (1) Capital and related portion of the cost shall be paid in funds from or on behalf of the recipient. United States. improvements to qualified shipyard Applications that use grant funds for facilities that will be effective in Third-party in-kind contributions are not allowed to satisfy the matching domestic-content purchases will be fostering efficiency, competitive viewed more favorably. If a project operations, and quality ship requirement. The applicant is required to submit detailed financial statements intends to use any product with foreign construction, repair, and content or of foreign origin, this reconfiguration; and (2) training projects and supporting documentation demonstrating how and when such information should be listed and that would be effective in fostering addressed in the application. employee skills and enhanced matching requirement is proposed to be funded as described below. The Applications should expressly address productivity related to shipbuilding, how the applicant plans to comply with ship repair, and associated industries. recipient’s entire matching requirement must be paid prior to payment of any domestic-preference requirements. If an MARAD intends to award the full applicant anticipates any potential amount of available funding through Federal funds for the project. Refer to foreign-content issues with its proposed grants to the extent that there are worthy section D.2 for the documentation project, applications should applications. No more than 25 percent required to satisfy the matching demonstrate that the domestic source is of the funds available will be awarded requirement. not available and how that to shipyard facilities in one geographic 3. Eligible Projects determination was achieved. If certain location that have more than 600 foreign content is granted an exception production employees. MARAD will Eligible projects include: (1) Capital from the Buy America requirements, a seek to obtain the maximum benefit and related improvement projects that Cargo Preference requirement may from the available funding by awarding will be effective in fostering efficiency, apply. grants to as many of the worthiest competitive operations, and quality ship projects as possible. MARAD may construction, repair, and D. Application and Submission partially fund applications by selecting reconfiguration; and (2) training projects Information parts of the total project. The start date that will be effective in fostering and period of performance for each employee skills and enhanced 1. Address To Request Application award will depend on the specific productivity related to shipbuilding, Package project and must be agreed to by ship repair, and associated industries. This announcement contains all the MARAD. MARAD will administer each For capital improvement projects, all information needed for applicants to Small Shipyard Grant pursuant to a items proposed for funding must be new apply for this funding opportunity. grant agreement with the Small and to be owned by the applicant. For Applications must include the Standard Shipyard Grant recipient. Amounts both capital improvement and training Form 424 (Application for Federal awarded as a grant under this notice projects, all project costs, including the Assistance), which is available on the

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Grants.gov website at https:// (d) A detailed methodology and matching requirement (e.g., loan www.grants.gov/web/grants/forms/sf- timeline for implementing the project. agreement, commitment from investors, 424-family.html. (e) A detailed itemization of the cost and cash on balance sheet) and in the of the project together with supporting timeline outlined in 2(d) above. 2. Content and Form of Application documentation, including current Section 10: Pro-forma financial Submission vendor quotes and estimates of statements reflecting (a) financial Although the form is available installation costs. condition beginning of period; (b) effect electronically, the application must be (f) A statement explaining if any on balance sheet of grant and matching filed in hard copy as indicated below elements of the project require action funds (e.g. a decrease in cash or increase due to the amount of information under the National Environmental in debt, additional equity, and an requested. Applicants must submit an Policy Act (42 U.S.C. 4321, et seq.) or increase in fixed assets); and (c) impact original paper copy of the application, require any licenses or permits. on company’s projected financial one additional paper copy of the Items 2(a) thru 2(f) should be condition (balance sheet) of completion application, and two USB flash drives repeated, in order, for each separate of project, showing that company will each containing a complete electronic project included in the application. have sufficient financial resources to version of the application in PDF format Section 3: A table with a prioritized remain in business. to: Associate Administrator for Business list of projects with the total cost and Section 11: Statement whether during and Finance Development, Room W21– Federal government share (in dollars) the past five years, the applicant or any 318, Maritime Administration, 1200 for each. predecessor or related company has New Jersey Avenue SE, Washington, DC Section 4: A description of any been in bankruptcy or in reorganization 20590. A shipyard facility in a single existing programs or arrangements, if under Chapter 11 of the Bankruptcy geographic location applying for any, which will be used to supplement Code, or in any insolvency or multiple projects must do so in a single or leverage the Federal grant assistance. reorganization proceedings, and application. The application for a grant Section 5: Shipyard company officer’s whether any substantial property of the must include all the following certification of each of the following applicant or any predecessor or related information as an addendum to the SF– requirements: company has been acquired in any such 424. The information should be (a) That the shipyard facility for proceeding or has been subject to organized in sections as described which a grant is sought is in a single foreclosure or receivership during such below: geographic location and (i) the shipyard period. If so, give details. Section 1: A description of the facility has no more than 600 Section 12: Consistent with the shipyard including (a) location of the production employees, or (ii) the Department’s R.O.U.T.E.S. Initiative shipyard; (b) a description of the shipyard facility has more than 600 (https://www.transportation.gov/rural), shipyard facilities; (c) years in production employees, but less than a strong transportation network is operation; (d) ownership; (e) customer 1,200 production employees (the critical to the functioning and growth of base; (f) current order book including shipyard officer must certify to either (i) the American economy. The nation’s type of work; (g) vessels delivered (or or (ii)); industry depends on the transportation major projects) over last 5 years; and (h) (b) That the applicant has the network to move the goods that it website address, if any. authority to carry out the proposed produces, and facilitate the movements Section 2: For each project proposed project; and of the workers who are responsible for for funding the following must be (c) In accordance with the U.S. that production. When the nation’s included: Department of Transportation’s highways, railways, and ports function (a) A comprehensive detailed regulation restricting lobbying, 49 CFR well, that infrastructure connects people description of the project, including a part 20, that the applicant has not, and to jobs, increases the efficiency of statement of whether the project will will not, make any prohibited payments delivering goods and thereby cuts the replace existing equipment, and if so, out of the requested grant. Certifications costs of doing business, reduces the the disposition of the replaced are not required to be notarized. burden of commuting, and improves equipment. Section 6: Unique entity identifier of overall well-being. Rural transportation (b) A description of the need for the shipyard’s parent company (when networks play a vital role in supporting project in relation to shipyard applicable): Data Universal Numbering our national economic vitality. operations and business plan and an System (DUNS + 4 number) (when Addressing the deteriorating conditions explanation of how the project will applicable). and disproportionately high fatality fulfill this need. Section 7: The most recent year-end rates on our rural transportation (c) A quantitative analysis audited, reviewed, or compiled infrastructure is of critical interest to the demonstrating how the project will be financial statements, prepared by a Department, as rural transportation effective in fostering efficiency, certified public accountant (CPA), per networks face unique challenges in competitive operations, and quality ship U.S. generally accepted accounting safety, infrastructure condition, and construction, repair, or reconfiguration principles (not tax-based accounting passenger and freight usage. Consistent (for capital improvement projects) or financial statements). If CPA prepared with the R.O.U.T.E.S. Initiative, the how the project will be effective in financial statements are not available, Department encourages applicants to fostering employee skills and enhanced provide the most recent financial consider how the project will address productivity related to shipbuilding, statement for the entity. Do not provide the challenges faced by rural areas. ship repair, and associated industries. tax returns. Applicants should also state whether The analysis should quantify the Section 8: Statement regarding the a project is located in a Qualified benefits of the projects in terms of man- relationship between applicants and any Opportunity Zone designated pursuant hours saved, dollars saved, percentages, parents, subsidiaries or affiliates, if any to 26 U.S.C. 1400Z–1. or other meaningful metrics. The such entity is going to provide a portion Additional information may be methodology of the analysis should be of the match. requested as deemed necessary by explained with assumptions used, Section 9: Evidence documenting MARAD to facilitate and complete its identified, and justified. applicant’s ability to make proposed review of the application. If such

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information is not provided, MARAD procure or obtain; extend or renew a economic vitality. Addressing the may deem the application incomplete contract to procure or obtain; or enter deteriorating conditions and and cease processing it. into a contract (or extend or renew a disproportionately high fatality rates on Section 13: If a project intends to use contract) to procure or obtain our rural transportation infrastructure is any product with foreign content or of equipment, services, or systems that of critical interest to the Department, as foreign origin, the application should uses covered telecommunications rural transportation networks face expressly address how the applicant equipment or services as a substantial or unique challenges in safety, plans to comply with domestic essential component of any system, or infrastructure condition, and passenger preference requirements as described in as critical technology as part of any and freight usage. The Department’s section C.4 of this notice and 46 U.S.C. system. See Section 889 of Public Law R.O.U.T.E.S. Initiative can be found at 54101(d)(2). If an applicant anticipates 115–232 (National Defense (https://www.transportation.gov/rural). any potential foreign-content issues Authorization Act 2019). 2. Review and Selection Process with its proposed project, applications should demonstrate that the domestic 6. Other Submission Requirements MARAD reviews all eligible source is not available and how that Applicants must submit an original applications received before the determination was achieved. paper copy of the application, and two deadline. The Small Shipyard Grant USB flash drives each containing a review and selection process consists of 3. Unique Entity Identifier and System complete electronic version of the three phases: Technical Review, Senior for Award Management (SAM) application in PDF format to: Associate Review, and Final Selection. In the MARAD may not make a Small Administrator for Business and Finance Technical Review phase, a Review Shipyard Grant award to an applicant Development, Room W21–318, Panel made up of technical experts, until the applicant has complied with Maritime Administration, 1200 New including naval architects and engineers all applicable unique entity identifier Jersey Avenue SE, Washington, DC from MARAD’s Office of Shipyards and and SAM requirements. Each applicant 20590. Marine Engineering, will review all must be registered in SAM before timely applications. Additional input submitting its application, provide a E. Application Review Information may be provided to the Review Panel on valid unique entity identifier number in 1. Selection Criteria economic issues by the Office of its application, and maintain an active Financial Approvals, on environmental This section specifies the criteria that SAM registration with current issues by the Office of Environment, and MARAD will use to evaluate and award information at all times during which it on legal issues by the Office of Chief applications for Small Shipyard grants. has an active Federal award or an Counsel. The Review Panel will assign The criteria incorporate the statutory application or plan under consideration a rating of ‘‘Highly Recommended,’’ eligibility requirements for this by a Federal awarding agency. ‘‘Recommended,’’ or ‘‘Not Program, which are specified in this Applicants may register with the SAM Recommended’’ based on how well the notice as relevant. applications align with the selection at www.SAM.gov. MARAD may not Consistent with the requirements of criteria. In addition, higher make a Federal award until the 46 U.S.C. 54101(b)(1), MARAD will considerations for award shall be made applicant has complied with all evaluate the applications based on how if applicants’ percentage match applicable unique entity identifier and effective the project will be in fostering contribution toward the overall project SAM requirements and, if an applicant efficiency, competitive operations, and is greater than the minimum and greater has not complied with the requirements quality ship construction, repair, and than other competing grant applications. by the time MARAD is ready to make a reconfiguration (for capital Federal award, MARAD may determine In the second review phase, the improvement projects) or how effective Senior Review Team, which is led by that the applicant is not qualified to the project will be in fostering employee receive a Federal award and use that the Maritime Administrator, will skills and enhancing productivity consider applications based upon the determination as a basis for making a related to shipbuilding, ship repair, and Federal award to another applicant. input of the Review Panel. The Senior associated industries. Review Team will determine which As a secondary criterion, higher 4. Submission Dates and Times projects to advance to the Secretary. In considerations for award shall be made Applications must be received by the third phase, the Secretary selects if applicants’ percentage match MARAD by 5:00 p.m. EST on February projects for final award. contribution toward the overall project 25, 2021. Applications received later The Department will review and is greater than the minimum and greater than this time will not be considered. consider applications for funding than other competing grant applications. MARAD encourages applicants to pursuant to this notice in accordance submit applications using a carrier and 2. Additional Considerations with the President’s September 2, 2020 method that will provide proof and time memorandum, entitled Memorandum (A) Opportunity Zones of delivery. The Administrator shall on Reviewing Funding to State and award grants under this section not later MARAD may also consider whether a Local Government Recipients of Federal than 120 days after the date of the project is located in a Qualified Funds That Are Permitting Anarchy, enactment of the appropriations Act for Opportunity Zone designated pursuant Violence, and Destruction in American the fiscal year concerned. to 26 U.S.C. 1400Z–1. Cities, consistent with guidance from the Office of Management and Budget (B) R.O.U.T.E.S. 5. Funding Restrictions and the Attorney General, and with all Grants under MARAD’s Small Consistent with the R.O.U.T.E.S. applicable laws. Shipyard Grant Program may not be Initiative, the Department will consider used to construct buildings or other how the project will address the 3. Federal Awardee Performance and physical facilities or to acquire land. challenges faced by rural areas under Integrity Information System (FAPIIS) Federal award recipients and the Small Shipyard Grant Program. Check subrecipients are prohibited from Rural transportation networks play a MARAD is required to review and obligating or expending grant funds to vital role in supporting our national consider any information about the

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applicant that is in the designated G. Federal Awarding Agency Contacts DEPARTMENT OF TRANSPORTATION integrity and performance system accessible through SAM (currently For further information concerning Pipeline and Hazardous Materials FAPIIS) (see 41 U.S.C. 2313). An this notice please contact David M. Safety Administration applicant, at its option, may review Heller, Director, Office of Shipyards and [Docket No. PHMSA–2020–0007] information in the designated integrity Marine Engineering, Maritime and performance systems accessible Administration, Room W21–318, 1200 Pipeline Safety: Request for Special through SAM and comment on any New Jersey Avenue SE, Washington, DC Permit; Southern Natural Gas information about itself that a Federal 20590; phone: (202) 366–5737; or fax: Company, L.L.C. awarding agency previously entered and (202) 366–6988. To ensure applicants is currently in the designated integrity receive accurate information about AGENCY: Pipeline and Hazardous and performance system accessible eligibility or the Program, you are Materials Safety Administration through SAM. MARAD will consider encouraged to contact MARAD directly, (PHMSA), DOT. any comments by the applicant, in rather than through intermediaries or ACTION: Notice. addition to the other information in the third parties, with questions. designated integrity and performance SUMMARY: PHMSA is publishing this system, in making a judgment about the H. Other Information notice to solicit public comments on a applicant’s integrity, business ethics, request for special permit received from All information submitted as part of and record of performance under the Southern Natural Gas Company, or in support of any application shall Federal awards when completing the L.L.C. (SNG). The special permit request review of risk posed by applicants. use publicly available data or data that is seeking relief from compliance with can be made public and methodologies certain requirements in the Federal F. Federal Award Administration that are accepted by industry practice pipeline safety regulations. At the Information and standards, to the extent possible. If conclusion of the 30-day comment 1. Federal Award Notices the application includes information period, PHMSA will review the you consider to be a trade secret or comments received from this notice as Following the evaluation outlined in confidential commercial or financial part of its evaluation to grant or deny section E, and after the required notice information, you should do the the special permit request. to Congress, MARAD will announce following: (1) Note on the front cover awarded projects by posting a list of DATES: Submit any comments regarding that the submission ‘‘Contains selected projects at www.marad.dot.gov/ this special permit request by February ships-and-shipping/small-shipyard- Confidential Business Information 22, 2021. grants. Following the announcement, (CBI);’’ (2) mark each affected page ADDRESSES: Comments should reference MARAD will contact the point of ‘‘CBI;’’ and (3) highlight or otherwise the docket number for this specific contact listed in the SF–424 to initiate denote the CBI portions. MARAD special permit request and may be development of the grant agreement. protects such information from submitted in the following ways: disclosure to the extent allowed under • E-Gov website: http:// 2. Administrative and National Policy applicable law. In the event MARAD www.Regulations.gov. This site allows Requirements receives a Freedom of Information Act the public to enter comments on any All awards must be administered (FOIA) request for the information, Federal Register notice issued by any pursuant to applicable Federal laws, MARAD will follow the procedures agency. rules, and regulations of MARAD. described in the Department of • Fax: 1–202–493–2251. • Federal wage rate requirements Transportation FOIA regulations at 49 Mail: Docket Management System: included in Subchapter IV of Chapter 31 CFR 7.29. Only information that is U.S. Department of Transportation, of Title 40, United States Code, apply to ultimately determined to be confidential Docket Operations, M–30, West all projects receiving funds under this under that procedure will be exempt Building Ground Floor, Room W12–140, Program, and apply to all parts of the from disclosure under FOIA. 1200 New Jersey Avenue SE, project, whether funded with Small Washington, DC 20590. Shipyard Grant funds, other Federal (Authority: 46 U.S.C. 54101 and the • Hand Delivery: Docket Management funds, or non-Federal funds. Consolidated Appropriations Act, 2021, System: U.S. Department of Public Law 116–260, December 27, 2020.) Transportation, Docket Operations, M– 3. Reporting Dated: January 15, 2021. 30, West Building Ground Floor, Room Each applicant selected for a Small By Order of the Chief Counsel in lieu of the W12–140, 1200 New Jersey Avenue SE, Shipyard capital or training grant will Administrator. Washington, DC 20590, between 9:00 be required to work with MARAD on a.m. and 5:00 p.m., Monday through T. Mitchell Hudson, Jr., the development and implementation of Friday, except Federal holidays. a plan to collect information and report Secretary, Maritime Administration. Instructions: You should identify the on the project’s performance with [FR Doc. 2021–01359 Filed 1–21–21; 8:45 am] docket number for the special permit respect to the relevant long-term BILLING CODE 4910–81–P request you are commenting on at the outcomes that are expected to be beginning of your comments. If you achieved through the capital project or submit your comments by mail, please training. Performance indicators will submit two (2) copies. To receive not include formal goals or targets, but confirmation that PHMSA has received will require analysis of post-project your comments, please include a self- outcomes, which will inform the Small addressed stamped postcard. Internet Shipyard Grant Program in working users may submit comments at http:// towards best practices, programmatic www.Regulations.gov. performance measures, and future Note: There is a privacy statement decision-making guidelines. published on http://

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www.Regulations.gov. Comments, Mississippi. The SNG pipeline class DATES: Written comments should be including any personal information location in the special permit segments received on or before March 23, 2021 to provided, are posted without changes or have changed from a Class 1 to a Class be assured of consideration. edits to http://www.Regulations.gov. 3 location. The SNG pipeline system ADDRESSES: Direct all written comments Confidential Business Information: special permit segments are 20-inch, 24- to Kinna Brewington, Internal Revenue Confidential Business Information (CBI) inch, 26-inch, and 36-inch diameter Service, Room 6526, 1111 Constitution is commercial or financial information pipelines with an existing maximum Avenue NW, Washington, DC 20224. that is both customarily and actually allowable operating pressure of 1,200 Requests for additional information or treated as private by its owner. Under pounds per square inch gauge (psig) or copies of the form(s) and instructions the Freedom of Information Act (FOIA) 1,250 psig. The installation of the should be directed to Sara Covington, (5 U.S.C. 552), CBI is exempt from special permit segments occurred (737)–800–6149 or Internal Revenue public disclosure. If your comments between 1958 and 2007. Service, Room 6526, 1111 Constitution responsive to this notice contain The special permit request, proposed Avenue NW, Washington, DC 20224, or commercial or financial information special permit with conditions, and through the internet at that is customarily treated as private, Draft Environmental Assessment (DEA) [email protected]. that you actually treat as private, and for the SNG pipeline are available for SUPPLEMENTARY INFORMATION: that is relevant or responsive to this review and public comment in Docket Title: Payments from Qualified notice, it is important that you clearly No. PHMSA–2020–0007. We invite Education Programs (Under Sections designate the submitted comments as interested persons to review and submit 529 and 530). CBI. Pursuant to 49 Code of Federal comments on the special permit request OMB Number: 1545–1760. Regulations (CFR) § 190.343, you may and DEA in the docket. Please include Form Number: 1099–Q. ask PHMSA to give confidential any comments on potential safety and Abstract: Form 1099–Q is used to treatment to information you give to the environmental impacts that may result report distributions from private and agency by taking the following steps: (1) if the special permit is granted. state qualified tuition programs as Mark each page of the original Comments may include relevant data. required under Internal Revenue Code document submission containing CBI as Before issuing a decision on the sections 529 and 530. ‘‘Confidential’’; (2) send PHMSA, along special permit request, PHMSA will Current Actions: There are no changes with the original document, a second evaluate all comments received on or being made to the form at this time. copy of the original document with the before the comment closing date. Type of Review: Extension of a CBI deleted; and (3) explain why the Comments received after the closing currently approved collection. information you are submitting is CBI. date will be evaluated, if it is possible Affected Public: Business or other for- Unless you are notified otherwise, to do so without incurring additional profit organizations. PHMSA will treat such marked expense or delay. PHMSA will consider Estimated Number of Respondents: submissions as confidential under the each relevant comment it receives in 3,689,800. FOIA, and they will not be placed in the making its decision to grant or deny this Estimated Time per Respondent: 13 public docket of this notice. special permit request. minutes. Submissions containing CBI should be Issued in Washington, DC under authority Estimated Total Annual Burden sent to Kay McIver, DOT, PHMSA– delegated in 49 CFR 1.97. Hours: 811,756. PHP–80, 1200 New Jersey Avenue SE, Alan K. Mayberry, The following paragraph applies to all Washington, DC 20590–0001. Any Associate Administrator for Pipeline Safety. of the collections of information covered commentary PHMSA receives that is not by this notice: specifically designated as CBI will be [FR Doc. 2021–01326 Filed 1–21–21; 8:45 am] BILLING CODE 4910–60–P An agency may not conduct or placed in the public docket for this sponsor, and a person is not required to matter. respond to, a collection of information FOR FURTHER INFORMATION CONTACT: unless the collection of information General: Ms. Kay McIver by telephone at DEPARTMENT OF THE TREASURY displays a valid OMB control number. 202–366–0113, or by email at Books or records relating to a collection [email protected]. Internal Revenue Service of information must be retained as long Technical: Mr. Steve Nanney by Proposed Collection; Comment as their contents may become material telephone at 713–272–2855, or by email Request for Form 1099–Q in the administration of any internal at [email protected]. revenue law. Generally, tax returns and SUPPLEMENTARY INFORMATION: AGENCY: Internal Revenue Service (IRS), tax return information are confidential, PHMSA received a special permit Treasury. as required by 26 U.S.C. 6103. request from SNG seeking a waiver from ACTION: Notice and request for Request for Comments: Comments the requirements of 49 CFR 192.611(a) comments. submitted in response to this notice will and (d): Change in class location: be summarized and/or included in the Confirmation or revision of maximum SUMMARY: The Internal Revenue Service, request for OMB approval. All allowable operating pressure, and as part of its continuing effort to reduce comments will become a matter of § 192.619(a): Maximum allowable paperwork and respondent burden, public record. Comments are invited on: operating pressure: Steel or plastic invites the general public and other (a) Whether the collection of pipelines. This special permit is being Federal agencies to take this information is necessary for the proper requested in lieu of pipe replacement or opportunity to comment on information performance of the functions of the pressure reduction for six (6) special collections, as required by the agency, including whether the permit segments of 9,399 feet (1.78 Paperwork Reduction Act of 1995. The information shall have practical utility; miles) on the SNG pipeline system. The IRS is soliciting comments concerning (b) the accuracy of the agency’s estimate proposed special permit segments are Form 1099–Q, Payments from Qualified of the burden of the collection of located in Effingham and Harris Education Programs (Under Sections information; (c) ways to enhance the Counties, Georgia and Clarke County, 529 and 530). quality, utility, and clarity of the

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information to be collected; (d) ways to DEPARTMENT OF THE TREASURY Assistance Center Improvements Project minimize the burden of the collection of Committee will be conducted. The information on respondents, including Internal Revenue Service Taxpayer Advocacy Panel is soliciting through the use of automated collection public comments, ideas, and techniques or other forms of information Open Meeting of the Taxpayer suggestions on improving customer technology; and (e) estimates of capital Advocacy Panel Taxpayer service at the Internal Revenue Service. Communications Project Committee or start-up costs and costs of operation, DATES: The meeting will be held maintenance, and purchase of services AGENCY: Internal Revenue Service (IRS), Tuesday, February 9, 2021. to provide information. Treasury. FOR FURTHER INFORMATION CONTACT: Approved: January 14, 2021. ACTION: Notice of Meeting. Matthew O’Sullivan at 1–888–912–1227 Sara L. Covington, or (510) 907–5274. IRS Tax Analyst. SUMMARY: An open meeting of the SUPPLEMENTARY INFORMATION: Notice is [FR Doc. 2021–01333 Filed 1–21–21; 8:45 am] Taxpayer Advocacy Panel’s Taxpayer hereby given pursuant to Section Communications Project Committee will BILLING CODE 4830–01–P 10(a)(2) of the Federal Advisory be conducted. The Taxpayer Advocacy Committee Act, 5 U.S.C. App. (1988) Panel is soliciting public comments, that an open meeting of the Taxpayer DEPARTMENT OF THE TREASURY ideas, and suggestions on improving Advocacy Panel’s Taxpayer Assistance customer service at the Internal Revenue Center Improvements Project Committee Internal Revenue Service Service. will be held Tuesday, February 9, 2021, DATES: The meeting will be held at 4:00 p.m. Eastern Time. The public is Open Meeting of the Taxpayer Tuesday, February 9, 2021. invited to make oral comments or Advocacy Panel’s Toll-Free Phone FOR FURTHER INFORMATION CONTACT: submit written statements for Lines Project Committee Conchata Holloway at 1–888–912–1227 consideration. Due to limited time and AGENCY: Internal Revenue Service (IRS), or 336–690–6217. structure of meeting, notification of Treasury. SUPPLEMENTARY INFORMATION: Notice is intent to participate must be made with ACTION: Notice of Meeting. hereby given pursuant to Section Matthew O’Sullivan. For more 10(a)(2) of the Federal Advisory information please contact Matthew SUMMARY: An open meeting of the Committee Act, 5 U.S.C. App. (1988) O’Sullivan at 1–888–912–1227 or (510) Taxpayer Advocacy Panel’s Toll-Free that a meeting of the Taxpayer 907–5274, or write TAP Office, 1301 Phone Lines Project Committee will be Advocacy Panel Taxpayer Clay Street, Oakland, CA 94612–5217 or conducted. The Taxpayer Advocacy Communications Project Committee will contact us at the website: http:// Panel is soliciting public comments, be held Tuesday, February 9, 2021, at www.improveirs.org. The agenda will ideas, and suggestions on improving 11:00 a.m. Eastern Time. The public is include various IRS issues. customer service at the Internal Revenue invited to make oral comments or Dated: January 15, 2021. Service. submit written statements for Kevin Brown, DATES: The meeting will be held consideration. Due to limited time and Acting Director, Taxpayer Advocacy Panel. Wednesday, February 10, 2021. structure of meeting, notification of [FR Doc. 2021–01373 Filed 1–21–21; 8:45 am] FOR FURTHER INFORMATION CONTACT: intent to participate must be made with BILLING CODE 4830–01–P Rosalind Matherne at 1–888–912–1227 Conchata Holloway. For more or 202–317–4115. information please contact Cedric Jeans SUPPLEMENTARY INFORMATION: Notice is at 1–888–912–1227 or 336–690–6217, or DEPARTMENT OF THE TREASURY hereby given pursuant to Section write TAP Office, 4905 Koger 10(a)(2) of the Federal Advisory Boulevard, Greensboro, NC 27407–2734 Internal Revenue Service Committee Act, 5 U.S.C. App. (1988) or contact us at the website: http:// that an open meeting of the Taxpayer www.improveirs.org. The agenda will Open Meeting of the Taxpayer Advocacy Panel Toll-Free Phone Lines include various IRS issues. Advocacy Panel’s Notices and Correspondence Project Committee Project Committee will be held Dated: January 15, 2020. Wednesday, February 10, 2021 at 4:00 Kevin Brown, AGENCY: Internal Revenue Service (IRS), p.m. Eastern Time. The public is invited Treasury. to make oral comments or submit Acting Director, Taxpayer Advocacy Panel. ACTION: written statements for consideration. [FR Doc. 2021–01376 Filed 1–21–21; 8:45 am] Notice of Meeting. BILLING CODE 4830–01–P Due to limited time and structure of SUMMARY: An open meeting of the meeting, notification of intent to Taxpayer Advocacy Panel’s Notices and participate must be made with Rosalind DEPARTMENT OF THE TREASURY Correspondence Project Committee will Matherne. For more information please be conducted. The Taxpayer Advocacy contact Rosalind Matherne at 1–888– Internal Revenue Service Panel is soliciting public comments, 912–1227 or 202–317–4115, or write ideas, and suggestions on improving TAP Office, 1111 Constitution Ave. NW, Open Meeting of the Taxpayer customer service at the Internal Revenue Room 1509, Washington, DC 20224 or Advocacy Panel Taxpayer Assistance Service. contact us at the website: http:// Center Improvements Project DATES: The meeting will be held www.improveirs.org. The agenda will Committee Tuesday, February 9, 2021. include various IRS issues. AGENCY: Internal Revenue Service (IRS), FOR FURTHER INFORMATION CONTACT: Dated: January 15, 2021. Treasury. Robert Rosalia at 1–888–912–1227 or Kevin Brown, (718) 834–2203. ACTION: Notice of Meeting. Acting Director, Taxpayer Advocacy Panel. SUPPLEMENTARY INFORMATION: Notice is [FR Doc. 2021–01375 Filed 1–21–21; 8:45 am] SUMMARY: An open meeting of the hereby given pursuant to Section BILLING CODE 4830–01–P Taxpayer Advocacy Panel’s Taxpayer 10(a)(2) of the Federal Advisory

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Committee Act, 5 U.S.C. App. (1988) DATES: The meeting will be held ACTION: Notice of Meeting. that an open meeting of the Taxpayer Wednesday, February 10, 2021. Advocacy Panel’s Notices and SUMMARY FOR FURTHER INFORMATION CONTACT: : An open meeting of the Correspondence Project Committee will Antoinette Ross at 1–888–912–1227 or Taxpayer Advocacy Panel’s Tax Forms be held Tuesday, February 9, 2021, at 202–317–4110. and Publications Project Committee will 1:30 p.m. Eastern Time. The public is be conducted. The Taxpayer Advocacy invited to make oral comments or SUPPLEMENTARY INFORMATION: Notice is Panel is soliciting public comments, submit written statements for hereby given pursuant to Section ideas, and suggestions on improving consideration. Due to limited time and 10(a)(2) of the Federal Advisory customer service at the Internal Revenue structure of meeting, notification of Committee Act, 5 U.S.C. App. (1988) Service. intent to participate must be made with that an open meeting of the Taxpayer Robert Rosalia. For more information Advocacy Panel’s Special Projects DATES: The meeting will be held please contact Robert Rosalia at 1–888– Committee will be held Wednesday, Wednesday, February 10, 2021. 912–1227 or (718) 834–2203, or write February 10, 2021, at 1:30p.m. Eastern FOR FURTHER INFORMATION CONTACT: Fred TAP Office, 2 Metrotech Center, 100 Time. The public is invited to make oral Smith at 1–888–912–1227 or (202) 317– Myrtle Avenue, Brooklyn, NY 11201 or comments or submit written statements 3087. contact us at the website: http:// for consideration. Due to limited time www.improveirs.org. The agenda will and structure of meeting, notification of SUPPLEMENTARY INFORMATION: Notice is include various IRS issues. intent to participate must be made with hereby given pursuant to Section Dated: January 15, 2020. Antoinette Ross. For more information 10(a)(2) of the Federal Advisory Kevin Brown, please contact Antoinette Ross at 1– Committee Act, 5 U.S.C. App. (1988) Acting Director, Taxpayer Advocacy Panel. 888–912–1227 or 202–317–4110, or that a meeting of the Taxpayer Advocacy Panel’s Tax Forms and [FR Doc. 2021–01372 Filed 1–21–21; 8:45 am] write TAP Office, 1111 Constitution Ave. NW, Room 1509, Washington, DC Publications Project Committee will be BILLING CODE 4830–01–P 20224 or contact us at the website: held Wednesday, February 10, 2021 at http://www.improveirs.org. The agenda 11:00 a.m. Eastern Time. The public is DEPARTMENT OF THE TREASURY will include various IRS issues. invited to make oral comments or Dated: January 15, 2021. submit written statements for consideration. Due to limited time and Internal Revenue Service Kevin Brown, structure of meeting, notification of Open Meeting of the Taxpayer Acting Director, Taxpayer Advocacy Panel. intent to participate must be made with Advocacy Panel’s Special Projects [FR Doc. 2021–01371 Filed 1–21–21; 8:45 am] Fred Smith. For more information Committee BILLING CODE 4830–01–P please contact Fred Smith at 1–888– AGENCY: Internal Revenue Service (IRS), 912–1227 or (202) 317–3087, or write TAP Office, 1111 Constitution Ave. NW, Treasury. DEPARTMENT OF THE TREASURY Room 1509, Washington, DC 20224 or ACTION: Notice of Meeting. Internal Revenue Service contact us at the website: http:// SUMMARY: An open meeting of the www.improveirs.org. Taxpayer Advocacy Panel’s Special Open Meeting of the Taxpayer Dated: January 15, 2021. Projects Committee will be conducted. Advocacy Panel’s Tax Forms and Kevin Brown, The Taxpayer Advocacy Panel is Publications Project Committee soliciting public comments, ideas, and Acting Director, Taxpayer Advocacy Panel. suggestions on improving customer AGENCY: Internal Revenue Service (IRS), [FR Doc. 2021–01377 Filed 1–21–21; 8:45 am] service at the Internal Revenue Service. Treasury. BILLING CODE 4830–01–P

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Part II

Federal Deposit Insurance Corporation

12 CFR Parts 303 and 337 Unsafe and Unsound Banking Practices: Brokered Deposits and Interest Rate Restrictions; Final Rule

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FEDERAL DEPOSIT INSURANCE a. Bank Operating Subsidiaries and the IDI banking industry, including the manner CORPORATION Exception in which banks source deposits. For b. Primary Purpose Exception many banks, brokered deposits are an 12 CFR Parts 303 and 337 3. Notice and Application Process for the important source of funds, and the Primary Purpose Exception RIN 3064–AE94; 3064–AF02 a. Notice Requirement marketplace for brokered deposits has b. Notice Contents and Reporting evolved in response to technological Unsafe and Unsound Banking Requirement developments and new business Practices: Brokered Deposits and c. Overview of the Application Process relationships. The FDIC recognizes that Interest Rate Restrictions d. Application Contents its regulations governing brokered e. Reporting for Approved Applicants deposits are outdated and do not reflect AGENCY: Federal Deposit Insurance f. Monitoring for IDIs current industry practices and the Corporation (FDIC). g. Requesting Additional Information, marketplace. As such, the FDIC initiated Requiring Re-Application, Imposing ACTION: Final rule. Additional Conditions, and Withdrawing an extensive rulemaking process to seek input from stakeholders and to develop SUMMARY: The FDIC is finalizing Approvals new regulations that take into revisions to its regulations relating to h. Additional Third Parties 4. Effective Date and Extended Compliance consideration current industry practices the brokered deposits and interest rate 5. Prior FDIC Staff Advisory Opinions and that allow for continued innovation. restrictions that apply to less than well D. Discussion of Certain Other Deposit Banks often collaborate with third capitalized insured depository Placement Arrangements Raised by parties, including financial technology institutions. For brokered deposits, the Commenters companies, for a variety of business final rule establishes a new framework E. Other Supervisory Matters Related to Brokered Deposits purposes including access to deposits. for analyzing certain provisions of the Moreover, banks are increasingly relying ‘‘deposit broker’’ definition, including F. Alternatives G. Expected Effects on new technologies to engage and ‘‘facilitating’’ and ‘‘primary purpose.’’ II. Interest Rate Restrictions interact with their customers, and it For the interest rate restrictions, the A. Policy Objectives appears that this trend will continue. FDIC is amending its methodology for B. Background Through this rulemaking process, the calculating the national rate, the C. Regulatory Approach FDIC attempted to ensure that the national rate cap, and the local market D. Need for Further Rulemaking brokered deposit regulations would rate cap. Further, the FDIC is explaining E. Advance Notice of Proposed Rulemaking and Notice of Proposed Rulemaking continue to promote safe and sound when nonmaturity deposits are accepted practices while ensuring that the and when nonmaturity deposits are 1. National Rate 2. National Rate Cap classification of a deposit as brokered solicited for purposes of applying the 3. Local Rate Cap appropriately reflects changes in the brokered deposits and interest rate 4. Off-Tenor Maturity Products banking landscape. restrictions. F. Discussion of Comments B. Background DATES: Effective Date: April 1, 2021; 1. Discussion of Public Comment on the with an extended compliance date of National Rate 1. Historical Statutory Framework 2. Discussion of Public Comment on the January 1, 2022, as provided in section National Rate Cap Section 29 of the Federal Deposit I(C)(4). 3. Discussion of Public Comment on Local Insurance Act (FDI Act) 1 restricts the FOR FURTHER INFORMATION CONTACT: Rae- Rate Cap acceptance of deposits by certain Ann Miller, Senior Deputy Director, 4. Discussion of Other Comments insured depository institutions (or (202) 898–3898, [email protected], G. Final Rule ‘‘IDIs’’) from a ‘‘deposit broker.’’ Section Division of Risk Management 1. National Rate 29, entitled ‘‘Brokered Deposits,’’ was Supervision; or Vivek V. Khare, 2. National Rate Cap 3. Local Market Rate Cap in the Final Rule added to the FDI Act by the Financial Counsel, (202) 898–6847, vkhare@ 4. Off-Tenor Maturity Products Institutions Reform, Recovery, and fdic.gov, Legal Division. H. Alternatives Enforcement Act of 1989 (FIRREA). The SUPPLEMENTARY INFORMATION: I. Expected Effects law originally restricted troubled III. Treatment of Nonmaturity Deposits institutions (i.e., those that did not meet Table of Contents A. Background the minimum capital requirements) I. Brokered Deposits B. Proposed Rulemakings from (1) accepting deposits from a A. Policy Objectives C. Comments deposit broker without a waiver and (2) B. Background D. Final Rule soliciting deposits by offering rates of 1. Solicitation of Funds by Offering Rates 1. Historical Statutory Framework interest on deposits that were 2. Current Regulation of Interest 3. Advance Notice of Proposed Rulemaking 2. Acceptance of Brokered Deposits significantly higher than the prevailing 4. Overview of Notice of Proposed 3. Acceptance of Brokered Deposits Subject rates of interest on deposits offered by Rulemaking and Comments Received to a Waiver Into a Nonmaturity Account other insured depository institutions C. Final Rule and Discussion of Comments 4. Summary of Treatment of Nonmaturity having the same type of charter in such 1. Deposit Broker Definition Deposits depository institution’s normal market a. Exclusive Deposit Placement IV. Administrative Law Matters area.2 Arrangements A. Paperwork Reduction Act Two years later, Congress enacted the b. Engaged in the Business of Placing B. Regulatory Flexibility Act Federal Deposit Insurance Corporation Deposits C. Riegle Community Development and c. Engaged in the Business of Facilitating Regulatory Improvement Act of 1994 Improvement Act of 1991 (FDICIA), the Placement of Deposits D. Congressional Review Act which added the Prompt Corrective d. Engaged in the Business of Placing E. Use of Plain Language Action (PCA) capital regime to the FDI Deposits With Insured Depository Act and also amended the threshold for Institutions for the Purpose of Selling I. Brokered Deposits Interests in Those Deposits to Third A. Policy Objectives 1 12 U.S.C. 1831f (also referred to herein as Parties ‘‘Section 29’’). 2. Exceptions to the ‘‘Deposit Broker’’ Significant technological changes 2 See Public Law 101–73, August 9, 1989, 103 Definition have affected many aspects of the Stat. 183.

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the brokered deposit and interest rate purpose of selling interests in those minority or women-owned depository restrictions from a troubled institution deposits to third parties; and institution program.’’ 11 to a bank falling below the ‘‘well Æ an agent or trustee who establishes 3. Advance Notice of Proposed capitalized’’ PCA level. At the same a deposit account to facilitate a business Rulemaking time, the FDIC was authorized to waive arrangement with an insured depository the brokered deposit restrictions for a institution to use the proceeds of the On December 18, 2018, the FDIC bank that is adequately capitalized upon account to fund a prearranged loan. Board approved an Advance Notice of a finding that the acceptance of such This definition is subject to the Proposed Rulemaking (ANPR), inviting deposits does not constitute an unsafe following nine statutory exceptions: comment on all aspects of the FDIC’s or unsound practice with respect to the 1. An insured depository institution, brokered deposit and interest rate institution.3 Thus, under current law, a with respect to funds placed with that regulations to obtain input from the ‘‘well capitalized’’ insured depository depository institution (the ‘‘IDI public on its brokered deposit and institution is not restricted from exception’’); interest rate regulations in light of accepting deposits from a deposit 2. an employee of an insured significant changes in technology, broker. An ‘‘adequately capitalized’’ depository institution, with respect to business models, the economic insured depository institution may funds placed with the employing environment, and products since the accept deposits from a deposit broker depository institution; regulations were adopted. only if it has received a waiver from the 3. a trust department of an insured The ANPR discussed issues with FDIC.4 A waiver may be granted by the depository institution, if the trust in sweep deposits, deposit listing services, FDIC ‘‘upon a finding that the question has not been established for statutory exceptions (particularly the acceptance of such deposits does not the primary purpose of placing funds primary purpose exception), software constitute an unsafe or unsound with insured depository institutions; products, prepaid cards, and interest practice’’ with respect to that 4. the trustee of a pension or other rate restrictions applicable to less than institution.5 An ‘‘undercapitalized’’ employee benefit plan, with respect to well-capitalized institutions depository institution is prohibited from funds of the plan; (particularly the definition and accepting deposits from a deposit 5. a person acting as a plan calculation of the national rate). The broker.6 administrator or an investment adviser ANPR also included historical and In 2018, Section 29 of the FDI Act was in connection with a pension plan or statistical analysis, in addition to other amended as part of the Economic other employee benefit plan provided information, including the FDIC’s Growth, Regulatory Relief, and that that person is performing experience with brokered deposit Consumer Protection Act, to except a managerial functions with respect to the questions. The ANPR was published in capped amount of certain ‘‘reciprocal plan; the Federal Register on February 6, deposits’’ from treatment as brokered 6. the trustee of a testamentary 2019.12 The FDIC received over 130 deposits.7 account; comments to the ANPR from individuals, banking organizations, non- 2. Current Regulations 7. the trustee of an irrevocable trust (other than one described in paragraph profits, as well as industry and trade Section 337.6 of the FDIC’s Rules and (1)(B)), as long as the trust in question groups, representing banks, insurance Regulations implements and closely has not been established for the primary companies, and the broader financial tracks the statutory text of Section 29, purpose of placing funds with insured services industry. particularly with respect to the depository institutions; Of the total comments, 59 related to definition of ‘‘deposit broker’’ and its 8. a trustee or custodian of a pension the FDIC’s rules on the interest rate exceptions.8 Section 29 of the FDI Act or profit sharing plan qualified under restrictions. The majority of these does not directly define a ‘‘brokered section 401(d) or 403(a) of the Internal commenters expressed concerns about deposit,’’ rather, it defines a ‘‘deposit Revenue Code of 1986; or the national rate calculation. Concerns broker’’ for purposes of the restrictions.9 9. an agent or nominee whose primary included the effect of calculating an Thus, the meaning of the term purpose is not the placement of funds average rate by including branches ‘‘brokered deposit’’ turns upon the with depository institutions (the (minimizing the significance of online- definition of ‘‘deposit broker.’’ ‘‘primary purpose exception’’). focused banks, which have few or no Section 29 and the FDIC’s The statute and regulation also define branches) and data issues with banks’ implementing regulation define the term an ‘‘employee’’ to mean any employee: published rates. Commenters suggested ‘‘deposit broker’’ to include: (1) Who is employed exclusively by the that to make rates appropriate for Æ Any person engaged in the business insured depository institution; (2) different economic environments and of placing deposits, or facilitating the whose compensation is primarily in the maximum transparency, the FDIC placement of deposits, of third parties form of a salary; (3) who does not share should set national rates at the higher of with insured depository institutions or such employee’s compensation with a the current rates and the previous (1992) the business of placing deposits with deposit broker; and (4) whose office rates based on US Treasury yields. insured depository institutions for the space or place of business is used Other comments addressed the local exclusively for the benefit of the insured rate, stressing the necessity to compete 3 See Public Law 102–242, Dec. 19, 1991, 105 Stat depository institution which employs for particular products within local 2236. 10 market areas. 4 See 12 U.S.C. 1831f. such individual. 5 In 1992, the FDIC amended its See id. 11 See 57 FR 23933, 23040 (1992). The FDIC 6 See id. regulations to include the following indicated in the preamble for the 1992 final rule 7 12 U.S.C. 1831f(i)(2)(E). tenth exception: ‘‘An insured depository that implemented the FDICIA revisions to Section 8 See 12 CFR 337.6. The FDIC issued two institution acting as an intermediary or 29 that those revisions were not intended to apply rulemakings related to the interest rate restrictions agent of a U.S. government department to deposits placed by insured depository under this section. The FDIC is also adopting a final institutions assisting government departments and rule for the interest rate restrictions as discussed in or agency for a government sponsored agencies in administration of minority or women- Part II of this Notice. owned deposit programs. 9 See 12 U.S.C. 1831f. 10 12 U.S.C. 1831f(g)(4). 12 84 FR 2366 (Feb. 6, 2019).

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Comments to the ANPR referring to would be considered ‘‘brokered’’ and that the changes are necessary and brokered deposit issues other than which would not. In addition, the FDIC without knowing the impact of the interest rate caps focused on the need proposed an expansion of the IDI changes. Another commenter criticized for clarity, specifically requesting the exception to permit wholly owned the proposal for failing to focus on the FDIC to clarify its historical subsidiaries that meet certain criteria to underlying risks of brokered deposits interpretation of the ‘‘deposit broker’’ be eligible for the exception. and weakening the FDIC’s ability to definition and its corresponding The FDIC also proposed an understand deposit volatility and statutory and regulatory exceptions. interpretation for the ‘‘primary purpose’’ balance sheet risks of supervised IDIs. A Many commenters stated that the FDIC exception to the ‘‘deposit broker’’ summary of comments received on had interpreted the definition of deposit definition and sought to provide a specific aspects of the proposed rule is broker too broadly and had significantly mechanism through which IDIs or third provided below in section. expanded the types of entities parties could apply to the FDIC to C. Final Rule and Discussion of considered to be deposit brokers beyond receive approval for meeting the Comments what was originally contemplated when primary purpose exception. The FDIC Section 29 was enacted. proposed that brokered CDs would 1. Deposit Broker Definition Commenters also requested clarity in continue to be considered to be the deposit broker definition, Section 29 of the FDI Act provides brokered. Finally, the FDIC proposed that a person is a ‘‘deposit broker’’ if it specifically with the primary purpose that existing staff FDIC advisory exception. Many commenters preferred is engaged in the business of placing opinions would either be rescinded if deposits, or facilitating the placement of a bright-line test and noted certain types they were no longer applicable under of deposits are designed for a purpose deposits, of third parties with insured the final rule or codified as part of the depository institutions or the business other than establishing a depository final rule if relevant under the new account, provide stable sources of of placing deposits with insured regulation. depository institutions for the purpose funding, do not have the risks The Brokered Deposits NPR solicited of selling interests in those deposits to associated with traditional brokered comment on all aspects of the proposed third parties.17 An agent or trustee also deposits, and, therefore, should meet rule. The comment period ended on meets the ‘‘deposit broker’’ definition the primary purpose exception. June 9, 2020.16 In response to the when establishing a deposit account to Because of the strong interest in both proposal, the FDIC received more than facilitate a business arrangement with interest rate cap issues and other 160 comments from individuals, an insured depository institution to use brokered deposit issues and to better banking organizations, non-profits, as the proceeds of the account to fund a address commenters’ concerns, the FDIC well as industry and trade groups prearranged loan.18 decided to issue separate proposed representing banks, insurance The statute does not further define the rulemakings, one relating to interest rate companies, and the broader financial categories that make up the definition of caps and the second, relating to services industry. A number of ‘‘deposit broker,’’ and the FDIC has proposed changes in the regulations commenters supported the FDIC’s authority under the FDI Act to issue other than those relating to interest rate efforts to modernize the rule and regulations to further clarify the types of caps. provide clarifications to key definitions. activities that cause a person to be Generally, a common theme amongst 4. Overview of Notice of Proposed considered to be a deposit broker.19 Rulemaking and Comments Received the commenters was a desire for the FDIC to provide additional clarification Historically, the FDIC has considered In its notice of proposed rulemaking to its proposed changes to the ‘‘deposit several factors in evaluating whether or (‘‘Brokered Deposits NPR,’’ or, in this not an entity is a ‘‘deposit broker,’’ 13 broker’’ definition and its corresponding Part, ‘‘proposal’’ or ‘‘proposed rule’’), statutory and regulatory exceptions. including, for example, whether or not and in response to comments submitted the entity receives fees from IDIs based 14 Some commenters suggested that a in response to the ANPR, the FDIC legislative change to Section 29 was upon the volume of deposits placed and proposed a number of significant needed, including replacing the whether the entity provides marketing changes to its brokered deposit brokered deposit restrictions with a or referral services on behalf of the IDIs. regulation to modernize the regulation restriction on asset growth for less than In the Brokered Deposits NPR, the in light of technological and other well capitalized institutions. FDIC proposed a new framework for innovations in the way banks source Commenters also suggested that the analyzing the deposit broker definition deposits. The FDIC proposed FDIC revise certain aspects of the in an effort to provide clarity around clarifications to the circumstances when a third party meets the definition. 15 proposal to permit certain types of under which a person meets the arrangements that, under the proposal, In this context, the FDIC described the deposit broker definition by interpreting would continue to be considered to be circumstances under which a third when a person is considered to be party would be: brokered to instead either fall within an Æ engaged in the business of ‘‘placing’’ or exception or otherwise to be determined Engaged in the business of placing ‘‘facilitating the placement’’ of deposits deposits; to be non-brokered. A small number of Æ on behalf of its customers. These commenters opposed the proposed engaged in the business of proposed changes were intended to changes, with one commenter stating facilitating the placement of deposits; provide clarity for industry participants and that the changes would create new Æ as to what types of deposit arrangements loopholes in the statutory restrictions on engaged in the business of placing brokered deposits, threatening safety deposits with insured depository 13 85 FR 7453 (Feb. 10, 2020). and soundness of banks and the Deposit institutions for the purpose of selling 14 84 FR 2366 (Feb. 6, 2019). Insurance Fund (DIF), without evidence interests in those deposits to third 15 This Notice also uses the term ‘‘third party’’ in parties. reference to the subject of the ‘‘deposit broker’’ definition. Consistent with section 29, this Notice 16 The comment period was extended for another also refers to the potential deposit broker with 60 days to provide commenters with additional 17 12 U.S.C. 1831f(g)(1)(A). respect to the primary purpose exception as the time to address the matters raised in the NPR. 85 18 12 U.S.C. 1831f(g)(1)(B). ‘‘agent or nominee.’’ FR 19706 (Apr. 8, 2020). 19 12 U.S.C. 1819(a)(Tenth).

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In general, commenters raised or more of such entities, will Æ The person provides assistance or concerns that the proposed deposit collectively still be viewed as one is involved in setting rates, fees, terms, broker definition was overly broad and ‘‘person’’ and thus qualify as a deposit or conditions for the deposit account; would create barriers to innovation. broker. or, Commenters also argued that the listed Æ The person is acting, directly or b. Engaged in the Business of Placing activities in the proposal, specifically in indirectly, with respect to the placement Deposits the proposed ‘‘facilitation’’ definition, of deposits, as an intermediary between would capture many third party service The statute provides that a person a third party that is placing deposits on providers and would prevent meets the definition of ‘‘deposit broker’’ behalf of a depositor and an insured community banks from using those if the person is ‘‘engaged in the business depository institution, other than in a providers for any purpose without of placing deposits’’ on behalf of a third purely administrative capacity. having the deposits be classified as party (i.e., a depositor) at insured depository institutions. As provided in i. Comments in Response to the brokered. Commenters also requested Proposed ‘‘Facilitation’’ Definition that the definition be further narrowed the proposed rule, the FDIC considers a and that the FDIC identify specific person to be engaged in the business of The FDIC sought to provide clarity activities in which a person could placing deposits if that person has a and consistency with respect to what it engage without being a deposit broker. business relationship with its means to facilitate the placement of The specific issues raised by customers, and as part of that deposits. The proposed ‘‘facilitation’’ commenters are summarized below. relationship, places deposits with IDIs definition was the issue that received on behalf of the customer (e.g., acting as the most comments; of the 166 comment a. Exclusive Deposit Placement custodian or agent for the underlying letters received (47 of which were form Arrangements depositor). letters), 118 commented on the Section 29 provides that a person Commenters suggested that the FDIC proposed definition. meets the ‘‘deposit broker’’ definition provide additional clarity to this part of In general, commenters raised (as described above) when it is the ‘‘deposit broker’’ definition with one concerns that some of the listed ‘‘engaged in the business of placing commenter suggesting that the FDIC activities in the proposal were overly deposits, or facilitating the placement of include the description provided above broad and, as proposed, would result in deposits, of third parties with insured in the final rule text, which the FDIC all deposits sourced through some use depository institutions or the business of agrees would provide clarity. As such, of third party service providers to be placing deposits with insured the FDIC is amending the ‘‘deposit classified as brokered. Some depository institutions for the purpose broker’’ definition in the final rule by (1) commenters suggested that all of selling interests in those deposits to including that the person must have a ‘‘relationship accounts’’ and transaction third parties’’ (emphasis added). The business relationship with its customers accounts ‘‘owned by a bank’’ with no FDIC recognizes that a number of to be ‘‘engaged in business’’ and (2) direct relationship between the third entities, including some financial providing that the person must receive party and the depositor should be technology companies, partner with one customer funds before placing deposits exempt from the definition of insured depository institution to to satisfy the ‘‘engaged in the business ‘‘facilitating.’’ Below is a summary of establish exclusive deposit placement of placing deposits’’ part of the the comments received on each of the arrangements. Under these definition. four prongs of the proposed arrangements, the third party has ‘‘facilitation’’ definition. developed an exclusive business c. Engaged in the Business of First Prong. Numerous commenters relationship with the IDI and, as a Facilitating the Placement of Deposits raised concerns about this first prong of result, is less likely to move its customer In contrast to the first part of the the definition of ‘‘facilitating,’’ related to funds to other IDIs in a way that makes deposit broker definition, the information sharing. Major trade the deposits less stable. ‘‘facilitation’’ part of the definition associations representing the banking As such, in an effort to clarify the refers to activities where the person industry suggested that the FDIC delete types of persons that meet the ‘‘deposit does not directly place deposits on the information sharing prong entirely broker’’ definition, and consistent with behalf of its customers with insured and focus instead on the extent to which the statute, under this final rule, any depository institutions. Historically, the a third party exercises control over the person that has an exclusive deposit term ‘‘facilitating the placement of account. A law firm commented that the placement arrangement with one IDI, deposits’’ has been interpreted by staff first prong would capture the core and is not placing or facilitating the at the FDIC to include actions taken by activities of essentially every financial placement of deposits at any other IDI, third parties to connect insured technology company or technology will not be ‘‘engaged in the business’’ of depository institutions with potential platform solutions provider performed placing, or facilitating the placement of, depositors. for or on behalf of depository deposits and therefore will not meet the Under the proposed rule, a person institutions, since many financial ‘‘deposit broker’’ definition. would meet the ‘‘facilitation’’ prong of technology companies receive and store This change is also intended to the ‘‘deposit broker’’ definition by, consumers’ credentials and share address comments, further described while engaged in business, engaging in verified consumer information with a below, that the FDIC would be any one, or more than one, of the depository institution. The commenter inundated with applications from banks following activities: expressed that an essential factor and third parties seeking the primary Æ The person directly or indirectly underlying the ‘‘facilitation’’ activities is purpose exception under the proposed shares any third party information with whether the person in question is acting application process. the insured depository institution; on behalf of the bank or on behalf of the The FDIC notes, however, that a Æ The person has legal authority, depositor. The commenter stated that person that creates or utilizes multiple contractual or otherwise, to close the where a person is acting on behalf of entities that each place deposits at account or move the third party’s funds and at the direction of the depositor, different IDIs to evade this rule, while to another insured depository that person’s activities should not be still maintaining a relationship with one institution; viewed as ‘‘facilitation’’ activities

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because no services are being provided Some commenters believed that the insured depository institution. to a particular depository institution. overly broad definition could include Moreover, when a third party can One company suggested that the listing services. However, one influence a depositor to either open the proposed definition of ‘‘facilitating the commenter believed that listing services account with a particular insured placement of deposits’’ should be should be included in the third prong depository institution or move funds revised to exclude third-parties who and cited legislative history to support between insured depository institutions, provide services to banks for the its position. Lastly, commenters the deposits tend to be less stable than purpose of enabling the bank to mentioned that the definition could be if the deposits were brought to the establish deposit accounts directly with used to capture a bank’s use of insured depository institution through a individual depositors. consulting or advisory services that single point of contact where that A number of commenters, including assist them with developing, delivering contact does not have influence over the bankers, a law firm, a trade association, and improving their deposit offerings. movement of deposits between insured and private companies, raised a specific Fourth Prong. A number of depository institutions. concern that the ‘‘information sharing’’ commenters expressed concerns that the Consistent with this approach to prong of the definition could be proposed fourth prong of the definition defining the ‘‘facilitating’’ part of the interpreted to include listing services, of ‘‘facilitation,’’ which excluded deposit broker definition, and in which historically have been viewed by persons involved in a purely response to issues raised by FDIC staff as excluded from being administrative capacity, was also commenters, the final rule provides that considered deposit brokers under ambiguous and should be clarified by if a person engages in any one of the certain circumstances. Several other providing a list of activities that would following activities, while engaged in bankers expressed similar views, be considered to be purely business, the person will be a deposit arguing that entities that simply provide administrative. A law firm commented broker and any deposits placed by the information, such as listing services, that the FDIC should clarify its intent person will be brokered: • should not be considered deposit with respect to the exclusion for ‘‘purely The person has legal authority, brokers and that the definition as administrative’’ conduct, and argued contractual or otherwise, to close the proposed could lead to such a result. that a third party conducting only account or move the third party’s funds administrative functions should be Second Prong. A number of to another insured depository permissible without the third party commenters expressed support for the institution; being considered a deposit broker. A • The person is involved in second prong to the proposed trade association suggested that the negotiating or setting rates, fees, terms, ‘‘facilitation’’ definition, which FDIC provide that an intermediary or conditions for the deposit account; or included activities where the person has between an IDI and a third party placing • The person engages in legal authority, contractual or otherwise, deposits is not ‘‘facilitating’’ if the third matchmaking, as defined in the rule. to close the account or move the third party is itself not a deposit broker and Proposed Information Sharing Prong party’s funds to another insured if the third party would not be a deposit depository institution. Specifically, broker if performing the intermediary’s The FDIC is not retaining the first commenters stated that this activity is activities itself regardless of whether proposed prong of the ‘‘facilitation’’ indicative of the type of active and those activities were ‘‘purely definition. The FDIC agrees with meaningful relationship that should be administrative.’’ commenters that the ‘‘direct or indirect required to find that a third party is sharing of customer information’’ is facilitating the placement of deposits ii. Final Rule Discussion for overly broad and could have the under the deposit broker definition. One ‘‘Facilitation’’ Definition unintended effect of capturing persons commenter asked that the FDIC limit the The FDIC is adopting the general that do not have influence or control second prong to include exclusive legal approach taken in the proposed rule over the placement of deposits. The authority over the movement of funds. with respect to the ‘‘facilitation’’ part of proposed first prong was generally Third Prong. Commenters expressed the deposit broker definition, but is intended to capture activities where the concerns with the proposed third prong making certain revisions to the person shares information in an effort to of the facilitation definition, believing definition. Under the final rule, a person match prospective depositors with that the definition was overly broad, is engaged in the business of facilitating particular banks, and that specific contained unnecessary terms, and the placement of deposits if that person activity, as part of the final rule, will would capture services the FDIC did not is engaged in certain activities with now be included in the matchmaking intend to capture. Some community respect to deposits placed at more than prong of the facilitation definition bankers believed that the proposed third one IDI. The activities that result in a discussed below. prong would result in classifying service person being ‘‘engaged in the business providers that provide assistance (but of facilitating the placement of Legal Control not the final determination) in setting deposits,’’ as discussed in the proposed The FDIC is finalizing the proposed rates, fees, terms or conditions for rule, is intended to capture activities prong relating to legal control over the various deposit account programs, as that indicate that the third party takes account as part of the ‘‘facilitation’’ deposit brokers. Other commenters an active role in the opening of an definition. Although one commenter mentioned that the phrase ‘‘providing account or maintains a level of suggested that having legal control of assistance’’ was unnecessary and influence or control over the deposit moving customer funds was too broad, ambiguous and should be deleted from account even after the account is open. many commenters supported this the final rule. The commenters Having a certain level of influence over criterion’s inclusion in the ‘‘facilitation’’ explained that because the proposed account opening, or retaining a level of definition. The FDIC believes that the rule would cover anyone ‘‘involved in’’ control over the movement of customer activity clearly demonstrates that a third setting rates, fees, terms or conditions, funds after the account is open, party has meaningful, substantial the term ‘‘providing assistance’’ would indicates that the deposit relationship is influence or control over an account only create ambiguity and could be read between the depositor and the person and, therefore, is acting as a deposit more broadly. rather than the depositor and the broker.

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Setting Rates, Terms, Conditions deposit allocation is based upon such dealers with the target deposit balances With respect to the proposed third information; and of various unaffiliated banks. It may be Æ a bank when the person has access prong, commenters viewed that the case that a third party with a to specific information of the deposit- primary purpose exception sweeps providing assistance with setting rates, balance objectives of the bank and the deposits to an affiliated IDI, and those terms, or conditions would be over- proposed deposit allocation is based sweep deposits would not be brokered, inclusive and capture consulting or upon such information. while the same third party uses an advisory services that assist banks in Specifically, this prong captures intermediary that would qualify as a improving their deposit offerings. As certain entities that utilize their deposit broker under this prong in the provided in a staff memorandum to the relationships with prospective placement of deposits at unaffiliated Brokered Deposits NPR comment file,20 depositors or depositor’s agents and IDIs, in which case those deposits certain activities such as market banks to propose deposit allocations at would be brokered.24 research, general consulting or advisory particular banks. These activities The third prong will not include third services, and advertising by including a indicate that the person has influence parties that provide administrative link on a website, were not intended to over the movement of deposits between services as part of a deposit sweep be included in the third prong of the insured depository institutions. These program between a depositor, its broker proposed facilitation definition. As activities also indicate that the person is dealer, and unaffiliated banks. In these such, the FDIC is revising this prong to not only satisfying the deposit cases, the third party may assist in the clarify that it only includes activities objectives of the depositor or its agent placement of sweep deposits with where a third party is negotiating or but also of the insured depository unaffiliated banks but does not propose setting rates, terms, or conditions for a institution. Such a relationship could deposit allocations, as described above. particular deposit product (on behalf of allow less than well capitalized The third prong is defined to capture a particular depositor or particular institutions to utilize a third party to bid specific forms of matchmaking that are banks).21 By striking the ‘‘providing for considerable volumes of funding, active in nature; more passive forms of assistance’’ factor, this revised prong quickly, which could present matching depositors and banks, such as will appropriately capture third parties heightened risks to the DIF. those in which traditional listing that influence or control the placement Additionally, such a relationship could services often engage, would not be of deposits by negotiating deposit terms increase the likelihood of a third party captured.25 between depositors and insured withdrawing funds from a less than well Unlike the fourth prong of the depository institutions. capitalized institution (or under other proposed rule, the final rule will not Providing Matchmaking Services circumstances, such as in the event an distinguish between the activities of a institution is the subject of an person that interfaces directly with a Finally, the FDIC is incorporating enforcement action), which could depositor and the activities of a person concepts from the proposed first prong present sudden liquidity concerns. that interfaces with an intermediary or (‘‘information sharing’’) and the This prong would not include persons a depositor’s agent. Rather, the proposed fourth prong with the new that engage in activities that would facilitation definition, and its three third prong to provide a clear otherwise satisfy the matchmaking criteria, will apply, generally, to any description of the types of activities that prong if, and to the extent that, these third party that plays a role in the flow were intended to be captured under the activities are conducted between a bank of funds between a prospective facilitation definition. and an affiliated third party.22 With depositor and the opening of a deposit This prong in the final rule will respect to this specific function, the account at an insured depository capture persons that engage in FDIC views such services by an institution. matchmaking. The final rule will define intermediary as administrative in nature Anti-Evasion. It may be possible for matchmaking as follows: due to the direct relationship between an entity that meets the matchmaking Æ A person is engaged in the person placing the deposits and the prong to modify its business matchmaking if the person proposes bank.23 However, deposits placed at arrangements in such a way that evades deposit allocations at, or between, more banks, with the assistance of persons the terms of the regulation while than one bank based upon both (a) the engaging in matchmaking activities, by maintaining effectively the same particular deposit objectives of a an affiliated third party that meets the business relationships. The FDIC has specific depositor or depositor’s agent, deposit broker definition would be included in the regulation an anti- and (b) the particular deposit objectives brokered. evasion provision that would allow the of specific banks, except in the case of This prong will include third parties FDIC to determine that such attempts to deposits placed by a depositor’s agent that engage in matchmaking as part of evade the matchmaking prong still meet with a bank affiliated with the an unaffiliated deposit sweep program the matchmaking prong. The purpose of depositor’s agent. A proposed deposit between a depositor, its broker dealer, the anti-evasion authority is not to allocation is based on the particular and various unaffiliated banks. These capture an entity that restructures it objectives of: third parties propose deposit allocations business in such a manner that it is no Æ A depositor or depositor’s agent by matching the deposit obligations of longer engaged in the type of when the person has access to specific either the depositor(s) or the broker matchmaking captured by the rule, but financial information of the depositor or rather to avoid creating an unintended depositor’s agent and the proposed 22 For ease of reference, the ‘‘depositor’s agent’’ in incentive for entities to modify or the ‘‘matchmaking’’ definition in 12 CFR restructure businesses solely to evade 337.6(a)(5)(iii)(C) is referred to here as the ‘‘third 20 See FDIC Federal Register Citations, Unsafe party’’. the regulation. In this regard, the FDIC and Unsound Banking Practices: Brokered Deposits 23 This view aligns with the FDIC’s intent not to expects to use this authority sparingly. Restrictions—Comments and Staff Disclosures, disrupt business arrangements that have existed for available at: https://www.fdic.gov/regulations/laws/ a number of years in reliance on prior staff guidance 24 See section I(C)(2)(b)(ii)(F) for further federal/2020/2020-unsafe-unsound-banking- related to affiliate sweep arrangements, when the discussion of the treatment of additional third practices-brokered-deposits-3064-ae94.html. resulting adjustments to business operations would parties who may qualify as a deposit broker. 21 In the final rule, this activity will be included be solely for the purpose of complying with 25 See section I(C)(5) for further discussion of in the second prong of the facilitation definition. regulatory changes. listing services.

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To provide an example, in the event in the name of a custodian or a sub- a. Bank Operating Subsidiaries and the that a third party that would otherwise custodian of the third party. The IDI Exception satisfy the criteria of the matchmaking certificate is funded by individual Under the IDI Exception, an IDI is not prong sells or licenses software that depositors through the third party, with considered to be a deposit broker when provides deposit placement or each individual depositor receiving an it places (or its employees place) funds allocation services between depositors ownership interest in the certificate that at the bank.27 As provided in the or banks in a manner that is intended is reflected on the books and records of proposed rule, the IDI Exception to evade this prong, and continues to the third party in a manner to permit applies, for example, in the case of a play an ongoing role in providing the pass-through treatment for purposes of division of an IDI that places deposits matchmaking function, the deposits deposit insurance for the individual exclusively with the parent IDI, but does placed through the assistance of the depositors. The FDIC acknowledges that not apply if a separately incorporated software may be considered brokered. the brokered CD market has evolved, in subsidiary of the IDI places deposits Conversely, in the event that a third part, to ensure that its underlying exclusively with the parent. However, party sells or licenses software that depositors receive pass-through deposit the FDIC proposed changes to expand provides deposit placement or insurance and to allow the beneficial the IDI exception to permit wholly allocation services between depositors owners of the deposits to trade their owned subsidiaries that meet certain or banks and does not subsequently play accounts in a secondary market criteria to be eligible for the exception. an ongoing role in providing any maintained by the broker. In doing this, the FDIC recognized that function related to matchmaking, then Nevertheless, under the final rule, a wholly owned operating subsidiary the deposits placed would not be without exception, and as further that meets certain criteria can be considered brokered. As such, whether explained below in the section considered similar to a division of an a third party meets the matchmaking discussing the primary purpose IDI for certain purposes. prong will, under the anti-evasion exception, brokered CDs continue to be provision, depend in part on whether i. Comments Received in Response to classified as brokered. Brokered CDs, the third party continues to play an the IDI Exception which were offered well before Section ongoing role in providing functions Of those who commented on this 29 of the FDI Act was enacted, were related to matchmaking. aspect of the proposed rule, a majority specifically intended to be included as were in favor of the expansion of the d. Engaged in the Business of Placing part of the statute. Moreover, and as exception to include wholly owned Deposits With Insured Depository provided in the ANPR, brokered CDs subsidiaries. Many also argued that the Institutions for the Purpose of Selling have caused significant losses to the exception should be further broadened, 26 Interests in Those Deposits to Third DIF. Regardless of any future so as to allow affiliates, in addition to Parties innovations and re-structuring in the wholly owned subsidiaries, to also fit i. Overview and Proposal brokered CD market, the FDIC intends within the exception (although one that third parties that assist in the commenter expressly stated that it The third part of the ‘‘deposit broker’’ placement of brokered CDs, or any should not be further expanded in this definition includes a person ‘‘engaged similar deposit placement arrangement way). Those who argued for further in the business of placing deposits with with a similar purpose, will continue to expansion suggested that there is little insured depository institutions for the be considered deposit brokers under practical difference between a wholly purpose of selling interests in those this part of the deposit broker owned subsidiary and an affiliate and deposits to third parties.’’ As provided definition. that deposits placed through an affiliate in the proposed rule, this part of the This final rule revises the proposed were not ‘‘hot’’ money that should be definition specifically captures the definition of a brokered CD in part 303 considered to be a brokered deposit. brokered certificates of deposit (CD) to more accurately reflect the current Some commenters also asked the FDIC market (referred to herein as ‘‘brokered marketplace. to clarify how ‘‘dual-hatted’’ or ‘‘dual- CDs’’). These are typically deposit employees’’ would be treated as part of placement arrangements where brokered 2. Exceptions to the ‘‘Deposit Broker’’ the new regulation. CDs are issued in wholesale amounts by Definition a bank seeking to place funds under ii. Final Rule Discussion for the IDI certain terms and sold through a Section 29 provides nine statutory Exception registered broker-dealer to investors, exceptions to the definition of deposit The final rule is not adopting the typically in fully insured amounts. broker and, as described earlier, the proposed changes to the IDI exception. FDIC established one regulatory Under this final rule, the deposit broker ii. Final Rule Discussion of Brokered exception to the definition. In the CDs definition does not include third parties proposal, the FDIC proposed amending that have an exclusive deposit In response to the proposal, a two exceptions—(1) the exception for an placement arrangement with one commenter clarified that the current insured depository institution, with insured depository institution. As a brokered CD market operates in a respect to funds placed with that result, the proposed expansion of the manner different than as described in depository institution (the ‘‘IDI IDI exception to wholly owned the notice of proposed rulemaking. exception’’) and (2) the exception for an subsidiaries is no longer necessary. This Rather than being arrangements in agent or nominee whose primary is because, under the proposal, in order which institutions issue a brokered CD purpose is not the placement of funds to meet the IDI exception, a wholly in a wholesale amount in the name of with depository institutions (the owned subsidiary would have to place a broker dealer, who then sells ‘‘primary purpose exception’’). In deposits exclusively with the parent IDI participations in the wholesale CD, in response to comments, as described among other conditions. As such, current financial markets, an insured below, the final rule makes revisions to wholly owned subsidiaries that would depository institution issues a master both exceptions. have met the proposed IDI exception CD in the name of the third party that has organized the funding of the CD, or 26 84 FR 2366, 2370 (Feb. 6, 2019). 27 12 U.S.C. 1831f((g)(2)(A)–(B).

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will not meet the ‘‘deposit broker’’ to ensure that the applicant met the noted that the phrase ‘‘customer assets definition under this final rule because relevant criteria for the exception and to under management’’ is a term of art in they have an exclusive deposit promote transparency and consistency securities law and limited in use for placement arrangement with one bank, for applicants. The proposal also broker dealers or investment advisors, their parent bank. established an ongoing reporting which the commenter suggested could In response to comments regarding process for approved applicants. lead to confusion and limit the scope of the status of ‘‘dual-hatted’’ or ‘‘dual’’ General Comments. In response to the the exception. At least one commenter employees under the final rule, the proposed framework, many commenters suggested that the threshold be raised to FDIC notes that the statutory suggested that the FDIC (1) establish 50 percent, while another suggested that ‘‘employee’’ exception applies solely to more bright-line tests, or business the 25 percent threshold was too high an ‘‘employee’’ who satisfies the arrangements, that qualify for the and would allow significant amounts of definition of an employee provided by primary purpose exception, and (2) deposits to flow to IDIs without the statute. The statute defines an eliminate the application process, or restricting business models that create ‘‘employee’’ as any employee: ‘‘(i) who revise it to create a more streamlined risk. is employed exclusively by the insured process. Commenters generally argued Primary purpose exception based on depository institution; (ii) whose that if the FDIC identified more bright- enabling transactions. In the Brokered compensation is primarily in the form of line tests, or business relationships, Deposits NPR, the FDIC proposed a a salary; (iii) who does not share such with respect to the primary purpose second business relationship that would employee’s compensation with a exception then there would be little, if meet the proposed primary purpose deposit broker; and (iv) whose office any, need for an application process. exception for parties that place funds at space or place of business is used Two commenters were critical of the depository institutions for the purpose exclusively for the benefit of the insured proposed changes to the definition of of enabling transactions (the ‘‘the depository institution, which employs the primary purpose exception. In enabling transactions’’ test or business such individual.’’ 28 This exception does particular, one commenter stated the relationship). The FDIC received not apply to a contractor or dual proposed changes would invite evasion comments suggesting that the FDIC employee because they are not and create opportunities for nonbanks provide clarity regarding the terms employed exclusively by insured instead of protecting the DIF. The ‘‘enabling transactions’’ and depository institutions. The exception commenter believed that the primary ‘‘transaction account’’ to further clarify would, however, apply to ‘‘dual-hatted’’ purpose exception should be based on the types of deposit arrangements that employees that are employed the primary purpose of deposits, not the would meet the exception. Other exclusively by the bank so long as the purpose of the agent and its customer. commenters indicated that the existence employees meet each of the other Another commenter stated that the of some fees, remuneration, or interest statutory elements of the ‘‘employee’’ proposal reflected rulemaking centered paid, should not prevent an entity from definition. on non-bank third parties, whereas the being eligible for the primary purpose FDIC’s mandate and responsibilities exception. One commenter noted that b. Primary Purpose Exception direct the agency to focus on IDIs that receiving a fee for wire transfer i. Overview of Proposal and Comments it insures and supervises. processing or other related transaction One commenter representing large services does not necessarily transform Section 29 provides that the primary financial institutions suggested that a third party’s primary intent from purpose exception applies to ‘‘an agent bright-line criteria will be more efficient processing ordinary business or nominee whose primary purpose is because banks can evaluate their transactions into deposit placement not the placement of funds with individual circumstances for a primary activity.29 depository institutions.’’ In the Brokered purpose exception and not have to wait Application process. For both the 25 Deposits NPR, the FDIC proposed a new for the FDIC’s approval. The commenter percent and the enabling transactions interpretation for the primary purpose stated that the banks would make good business relationships, the FDIC exception based on the relationship faith determinations that would be proposed an application process between the agent or nominee and its subject to review in the examination through which applicants would customers. Specifically, the primary process. The commenter, and several demonstrate that they meet the criteria purpose exception would apply when others, raised concerns that, unless the for the particular exception and the the primary purpose of the agent’s or FDIC eliminates or revises the proposed FDIC, on an expedited basis, would nominee’s business relationship with its application process, the FDIC would be review and approve the application. customers is not the placement of funds inundated with applications from banks Commenters who addressed this process with depository institutions. and third parties seeking the primary were critical, suggesting that, at least for Along with the new interpretation, purpose exception. the two business relationships that meet Primary purpose exception based on the FDIC proposed a new framework for the criteria set forth in the proposal, at 25 percent test. In addition to the evaluating business relationships that most a notice requirement should exist. general comments about the overall may meet the primary purpose Commenters raised concerns about framework for evaluating primary exception and identified two types of FDIC’s ability to evaluate so many purpose exceptions, the FDIC also relationships that would be deemed to applications in a timely manner and received numerous comments on the qualify for the exception. Under the suggested that the FDIC could evaluate proposed primary purpose exception for proposal, the FDIC would evaluate the business relationships as part of an entities placing less than 25 percent of whether a particular business examination rather than requiring customer assets under management with relationship meets the primary purpose approval in advance. insured depository institutions (the ‘‘25 exception through an application Other business relationships. As percent’’ test or business relationship). process, available to both IDIs and third noted above, the FDIC also proposed parties. The proposed application Most of those comments sought process was intended to allow the FDIC additional clarity as to the definitions of 29 Under the proposal, the FDIC only would have ‘‘business line’’ and ‘‘customer assets considered fees, interest, or other remuneration 28 12 U.S.C. 1831(g)(4). under management.’’ One commenter paid to the underlying depositor.

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that parties that did not qualify under exceptions, the FDIC will require a business relationships are identified as either the ‘‘25 percent’’ business notice, while for the other designated designated exceptions under the final relationship or the ‘‘enabling exceptions, no notice, application, or rule: Business relationships in which, transactions’’ business relationship reporting will be required. Under the with respect to a particular business could apply for a primary purpose final rule, entities that do not meet one line: 31 exception. A number of commenters of the designated exception may apply (1) Less than 25 percent of the total raised concerns about the application for a primary purpose exception. The assets that the agent or nominee has process, in some cases arguing it should final rule will also authorize the FDIC under administration for its customers be eliminated and in most cases stating to identify additional relationships as is placed at depository institutions; that it would be too cumbersome and designated exceptions to the primary (2) 100 percent of depositors’ funds time consuming both for the applicants purpose exception (and therefore will that the agent or nominee places, or and for the FDIC to evaluate the not require an application). assists in placing, at depository applications in a timely manner. The FDIC also notes that certain institutions are placed into transactional Commenters suggested that the FDIC agents or nominees may only place accounts that do not pay any fees, instead should establish additional deposits at one IDI, in which case the interest, or other remuneration to the ‘‘bright-line’’ categories of business agent or nominee would not be a depositor; arrangements that are eligible for the deposit broker, regardless of whether (3) a property management firm primary purpose exception, which the agent or nominee satisfies the places, or assists in placing, customer would largely obviate the need for an primary purpose exception. However, funds into deposit accounts for the application process aside from entities the FDIC notes that if an agent or primary purpose of providing property that did not fit within one of the nominee places deposits at one IDI as management services; predetermined business relationships. part of one business line,30 such as part (4) the agent or nominee places, or Specifically, commenters noted that of a sweep program, and places deposits assists in placing, customer funds into some business arrangements have been at one or more other IDIs as part of one deposit accounts for the primary provided the primary purpose exception or more other business lines, such as purpose of providing cross-border in the past via staff advisory opinions, issuing brokered CDs, that agent or clearing services to its customers; and that such arrangements should also nominee would still qualify as a deposit (5) the agent or nominee places, or be included in the list of arrangements broker unless it satisfied the primary assists in placing, customer funds into that are deemed to meet the primary purpose exception, with respect to a deposit accounts for the primary purpose exception. particular business line, or one of the purpose of providing mortgage ii. Primary Purpose Exception in the other nine exceptions to the definition servicing; Final Rule of ‘‘deposit broker.’’ (6) a title company places, or assists in placing, customer funds into deposit A. Designated Exceptions As described below, and in response accounts for the primary purpose of to the comments, the final rule retains In the final rule, the FDIC recognizes facilitating real estate transactions; the proposal’s interpretation of the a number of business relationships, (7) a qualified intermediary places, or primary purpose exception and revises known as ‘‘designated exceptions,’’ assists in placing, customer funds into the proposed framework for the primary described below, as meeting the primary deposit accounts for the primary purpose exception in several ways. Like purpose exception. Two of these purpose of facilitating exchanges of in the proposal, the primary purpose relationships are the relationships properties under section 1031 of the exception, in the final rule, will apply described in the proposal as business Internal Revenue Code; when, with respect to a particular relationships deemed to meet the (8) a broker dealer or futures business line, the primary purpose of primary purpose exception—the ‘‘25 commission merchant places, or assists the agent’s or nominee’s business percent’’ business relationship and the in placing, customer funds into deposit relationship with its customers is not ‘‘enabling transactions’’ business accounts in compliance with 17 CFR the placement of funds with depository relationship. Unlike in the proposal, 240.15c3–3(e) or 17 CFR 1.20(a); institutions. Whether an agent or these two relationships will not be (9) the agent or nominee places, or nominee qualifies for the primary required to go through the application assists in placing, customer funds into purpose exception will be based on an process, and instead will only require a deposit accounts for the primary analysis of the agent’s or nominee’s notice. The final rule also adds a purpose of posting collateral for relationship with those customers. number of designated exceptions that customers to secure credit-card loans; However, the FDIC agrees with will neither require a notice nor an (10) the agent or nominee places, or commenters that the proposed application. The additional designated assists in placing, customer funds into application process for business exceptions include business deposit accounts for the primary relationships that the FDIC designates as relationships that have previously been purpose of paying for or reimbursing meeting the primary purpose exception viewed by staff at the FDIC as meeting qualified medical expenses under is not necessary. the primary purpose exception, and section 223 of the Internal Revenue In the final rule, the FDIC (1) were evaluated as part of this Code; identifies several, specific business rulemaking process to meet the primary (11) the agent or nominee places, or relationships as meeting the primary purpose exception under the assists in placing, customer funds into purpose exception, described as interpretation of the exception adopted deposit accounts for the primary ‘‘designated exceptions,’’ and (2) allows in this final rule, as well as certain agents or nominees that do not meet one business arrangements identified by 31 The FDIC recognizes that some of these of these designated exceptions to apply commenters as meeting the primary arrangements may be between an agent or nominee for a primary purpose exception. purpose exception. The following and one insured depository institution. Under this Business relationships that qualify for a final rule, if the agent or nominee has an exclusive deposit placement arrangement with one IDI, and designated exception will not be 30 Additional discussion regarding the concept of does not place or facilitate the placement of required to go through the application a ‘‘business line’’ is provided in section deposits at any other IDI, then it will not meet the process. For two of the designated I(C)(2)(b)(ii)(E). ‘‘deposit broker’’ definition.

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purpose of investing in qualified tuition intention that this test cover both transaction accounts, and no fees, programs under section 529 of the customer assets managed by the agent or interest, or other remuneration is Internal Revenue Code; nominee and those customer assets for provided to the depositor, the agent or (12) the agent or nominee places, or which the agent or nominee provides nominee will meet the designated assists in placing, customer funds into certain other services but may not exception of enabling transactions. deposit accounts to enable participation exercise deposit placement or Entities that wish to avail themselves of in the following tax-advantaged investment discretion. the designated exception for ‘‘enabling programs: Individual retirement As part of the final rule, in transactions’’ would not be subject to accounts under section 408(a) of the determining the amount of customer the application process, as under the Internal Revenue Code, Simple assets under administration by an agent proposal, and would instead be required individual retirement accounts under or nominee, for a particular business to file a notice, as detailed in section section 408(p) of the Internal Revenue line, the agent or nominee must measure I(C)(3). Code, and Roth individual retirement the total market value of all the financial Under the final rule, agents or accounts under section 408A of the assets (including cash balances) that the nominees that place customer deposits Internal Revenue Code; agent or nominee administers on behalf at depository institutions in (13) a Federal, State, or local agency of its customers that participate in a transactional accounts in which the places, or assists in placing, customer particular business line. customer earns some amount of interest, As a result, under the final rule, an funds into deposit accounts to deliver fees, or other remuneration, will agent or nominee will meet the funds to the beneficiaries of government continue to be subject to an application designated exception if less than 25 programs; and process. However, in response to (14) the agent or nominee places, or percent of the total assets that the agent comments that asked for more clarity on assists in placing, customer funds into or nominee has under administration for how these arrangements can meet the deposit accounts pursuant to such other its customers, in a particular business primary purpose exception, the relationships as the FDIC specifically line, is placed at depository institutions. following criteria will be considered as identifies as a designated business 2. Enabling Transactions part of the application process: relationship that meets the primary Æ purpose exception. Proposal. As part of the Brokered The amount of interest, fees, or Deposits NPR, the FDIC also proposed other remuneration; 1. Deposit Placements of Less Than 25 that the primary purpose of an agent’s Æ The amount of transactions that Percent of Customer Assets Under or nominee’s business relationship with customers make, on average, on a Management by the Third Party its customers would not be considered month-to-month basis; Under the proposal, the FDIC to be the placement of funds if the agent Æ The marketing materials provided provided that the primary purpose of an or nominee places depositors’ funds by the agent or nominee indicate that agent’s or nominee’s business into transactional accounts for the funds placed into insured depository relationship with its customers will not purpose of enabling transactions. institutions are to enable transactions be considered to be the placement of Under the proposed rule, if 100 for depositors; and percent of an agent’s or nominee’s funds at a depository institution, subject Æ If any customer funds are placed in customer funds that are placed at to an application process, if less than 25 deposit accounts that are not transaction depository institutions are placed into percent of the total assets that the agent accounts, the percentage of customer transaction accounts, and no fees, or nominee has under management for funds placed in deposit accounts that interest, or other remuneration is its customers, in a particular business are not transaction accounts. line, is placed at depository institutions. provided to the depositor, then the The FDIC is finalizing the proposed agent or nominee would meet the To the extent an agent or nominee ‘‘25 percent’’ test generally as proposed primary purpose exception of enabling that places all customer deposits at but, in response to comments, is transactions. depository institutions in transactional revising the phrase ‘‘assets under However, the FDIC also proposed that accounts can establish via the management’’ to ‘‘assets under if the agent or nominee, or the application process that it markets and administration.’’ The FDIC is also depository institution, pays any sort of offers its deposit placement service for providing additional clarity regarding interest, fee, or provides any the primary purpose of enabling the concept of a ‘‘business line’’ in remuneration (e.g., nominal interest transactions and that its customers (1) section I(C)(2)(b)(ii)(E). paid to the deposit account), the agent earn a nominal amount of interest, fees, The FDIC is also reiterating for or nominee would still be eligible for or other remuneration on its deposits, clarification that if more than 25 percent the primary purpose exception, but the based on the interest rate environment of the total customer assets that an agent FDIC would more closely scrutinize the at the time, or (2) on average, make more or nominee has under administration is agent’s or nominee’s business to than six transactions a month, then the placed at depository institutions, the determine whether the primary purpose FDIC will determine that the agent or agent or nominee may still apply for a is truly to enable payments. The FDIC nominee meets the primary purpose primary purpose exception through the identified factors to be considered in exception. The FDIC is providing this application process described in section evaluating such a scenario, including guidance in the preamble to provide I(C)(3)(c). the number of transactions in customer clarity to potential applicants and to Customer assets under management. accounts, and the interest, fees, or other streamline the approval of applications In response to comments indicating that remuneration provided, in determining from agents or nominees with a primary the phrase ‘‘customer assets under the applicability of the primary purpose purpose of enabling transactions. The management’’ is generally limited to exception. FDIC is not establishing a designated certain broker dealer and investment Under the final rule, if an agent or exception for such arrangements due to advisor business, the FDIC is revising nominee places 100 percent of its the lack of bright line standards for the term to ‘‘customer assets under customer funds that have been placed at evaluating marketing materials and for administration.’’ The revised phrase depository institutions, with respect to defining ‘‘nominal’’ interest, fees, or more accurately reflects the FDIC’s a particular business line, into other remuneration in different interest

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rate environments.32 The FDIC is less efficient to include some of these clearing capabilities places, or assists in likely to approve an application in arrangements as part of the bright-line placing, its customer funds into bank which customers receive more than a test for the exception. In this way, accounts at an IDI (the ‘‘clearing IDI’’) nominal amount of interest, fees, or entities that have relied upon previous that acts as an intermediary to clear and other remuneration on their deposits staff opinions for the primary purpose settle the transfer of the customer’s and, on average, make fewer than six exception will be able to continue to funds into the transaction recipient’s transactions per month. rely upon the exception. bank account. In providing cross-border If an agent or nominee that applies for Moreover, and in response to clearing functions, the customer’s funds a primary purpose exception places a comments, the FDIC is also identifying are placed in deposit accounts at the small percentage of deposits in accounts other business relationships that the clearing IDI for a very limited period of that are not transaction accounts, the FDIC believes meet the primary purpose time and are typically disbursed to the FDIC may still consider approving the exception as designated exceptions. recipient immediately (or almost application, depending on the facts and Agents or nominees that qualify for a immediately). circumstances, including an analysis of designated exception listed below do Under these circumstances, the third the criteria discussed above, but will not have to file an application or notice. party’s primary purpose in placing, or more closely scrutinize whether the facilitating the placement of, deposits at primary purpose is enabling Property Management Services the clearing IDI is to facilitate the transactions. Certain property management firms clearing of payments and will be As noted in the Brokered Deposits assist clients, such as homeowner’s deemed to meet the primary purpose NPR, and in response to commenters associations (‘‘HOAs’’), in managing exception and qualify for a designated asking the FDIC to expand the proposed their properties. These property exception. This outcome is consistent exception, the proposed exception was management firms might place deposits with previous staff advisory opinions not intended to apply to all third parties at insured depository institutions related to clearing services provided by that place deposits into accounts that because they need to deposit rent insured depository institutions.35 have transactional features and is not checks or security deposits on behalf of The FDIC recognizes that IDIs provide intended to create an incentive for their client and may use some of those a variety of clearing services that may be deposit brokers to move customers from funds to pay for maintenance or repairs outside of the scope of the specific time deposits to transaction accounts in needed on the client’s property. Under cross-border clearing services order to evade brokered deposits the final rule, a property management designated exception described above. restrictions. Rather, the proposed firm that places deposits at insured At this point, the FDIC will evaluate exception was intended to and will, as depository institutions to provide whether these other clearing services part of this final rule, apply only to property management services will be provided to customers will meet the third parties whose business purpose is deemed to meet the primary purpose primary purpose exception as part of the to place funds at depository institutions and qualify for a designated exception. application process. As described in to enable transactions or make The primary purpose of the relationship section I(C)(3)(h), if the FDIC determines payments. between a property management service that other clearing services meet the B. Additional Designated Exceptions and its customer is to manage a primary purpose exception, then it will property, rather than to place funds in also consider whether additional As provided in the proposal, the FDIC deposits accounts at IDIs.34 particular clearing services should be indicated that it would review existing The FDIC also notes that companies identified as designated exceptions. advisory opinions to determine those that assist property management firms Real Estate Related Transactions that should be codified in the final rule or their clients in placing funds at and those that were outdated and insured depository institutions to Mortgage servicing. Mortgage 33 should be rescinded. A number of the maximize yield or deposit insurance servicing rights are often sold to staff advisory opinions related to the may still qualify as deposit brokers. mortgage servicers that are responsible primary purpose exception, and some of These companies that either place or for the day-to-day management of a loan these opinions interpreted the primary assist in placing funds would not be account, including collecting a purpose exception as applying to certain eligible for the primary purpose borrower’s monthly payments of third parties engaged in certain business exception under this particular business principal and interest and disbursing arrangements. While these opinions relationship because the primary these funds to stakeholders pursuant to were based upon an interpretation of the purpose of their deposit placement the terms of servicing agreements. primary purpose exception that is activity, on behalf of their client (the Mortgage service providers also collect different than the interpretation property management firm), is not to from borrower’s prepayments of each provided in this final rule, the outcome provide property management borrower’s respective property tax and of whether the arrangements meet the functions. property insurance premiums and hold primary purpose exception under the such funds in escrow accounts until final rule interpretation would not Cross-Border Clearing Services such payments are due, at which time necessarily change if evaluated under Certain insured depository they use the escrowed funds to make the revised interpretation. In an effort to institutions provide cross-border payments. As part of managing these streamline the process for determining clearing services for customers to services, mortgage servicers place funds whether an agent or nominee meets the facilitate fund or payment transfers into omnibus deposit accounts at primary purpose exception, the FDIC where the payee and the transaction insured depository institutions. The agrees with commenters that it is more recipient are located in separate primary purpose of the mortgage countries. Specifically, in these servicer’s relationship with its 32 Under the final rule, the FDIC retains authority arrangements, a nonbank entity or a customers is providing the services to determine whether a rate of interest paid is nominal. bank that does not have cross-border listed above related to the loan account, 33 A full discussion of that review, and the comments received on previous advisory opinions, 34 FDIC Staff Advisory Opinion 17–02 (June 19, 35 See FDIC Staff Advisory Opinion 16–01 (May is provided below in section I(C)(5). 2017). 19, 2016).

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and not the placement of deposits at relationship with its clients is to a Special Reserve Account is to provide IDIs. Accordingly, under this final rule, facilitate the exchange of property, not customer protection in the event of a mortgage servicers that place deposits at to place deposits at IDIs. Accordingly, broker dealer liquidation. Thus, to the insured depository institutions to fulfill under the final rule, QIs that place extent that the balance in a Special their obligations under servicing deposits into depository institutions to Reserve Account is owned by customers agreements meet the primary purpose facilitate the exchange of two properties at the time funds are deposited into it, exception and qualify for a designated under section 1031 of the Internal such arrangement meets the primary exception. This outcome is consistent Revenue Code are deemed to meet the purpose exception and qualifies for a with previous staff advisory opinions primary purpose exception and qualify designated exception.41 related to mortgage servicers.36 for a designated exception. This Futures Commission Merchant’s Residential/Commercial Escrow outcome is consistent with previous Funds in a Segregated Customer Services. Prior to closing a real estate staff advisory opinions related to certain Account. Regulations of the Commodity transaction, the parties involved (e.g., QIs.38 Futures Trading Commission (CFTC) the seller and buyer) often times have provide protections for futures customer Deposits Related to Satisfaction of funds under a regulatory system similar the funds necessary to complete the Certain Regulations pending real estate transaction held by to the SEC’s requirements related to the a title insurance company in a deposit Broker Dealer Funds in a Special Special Reserve Account. Under the account at an insured depository Reserve Account for the Benefit of CFTC’s regulations, a futures institution. The purpose of having a Customers. A broker dealer registered commission merchant must maintain in third party title company hold funds in with the United States Securities and a separate account at a bank or trust an escrow account is to protect the Exchange Commission (SEC) is required company money or permitted interests of all parties involved by to establish an account at a bank titled investments in an amount at least ensuring that no funds or property will ‘‘Special Reserve Account for the sufficient in the aggregate to cover its be transferred until every escrow term Benefit of Customers’’ and to keep in the total obligations to all futures customers and condition has been met. The account cash or qualified securities as computed under a formula primary purpose of the third party title (Special Reserve Account).39 established by the CFTC (Segregated 42 company’s relationship with its The Special Reserve Account protects Customer Account). customers in such an arrangement is a broker dealer’s customers in the event The Segregated Customer Account typically providing title services or the broker dealer is liquidated, in which protects a futures commission facilitating the closure of the real estate case the funds and qualified securities merchant’s customers in the event the transaction, and in any case not the in the Special Reserve Account, in futures commission merchant is placement of deposits at IDIs. addition to funds collected by the liquidated, in which case the Account balance and permitted investments in Accordingly, under the final rule, title liquidating agent from customers of the the Segregated Customer Account, in companies that place deposits at firm that have debits, are used to satisfy addition to funds collected by the insured depository institutions to customer claims on a pro rata basis liquidating agent from customers of the facilitate a real estate transaction are before being available for the firm’s firm that have debits, are used to satisfy deemed to meet the primary purpose general creditors. While the broker customer claims on a pro rata basis exception and qualify for a designated dealer is operating as a going concern, before being available for the firm’s exception. This outcome is consistent it is prohibited from using the funds or qualified securities in the Special general creditors. with previous staff advisory opinions The primary purpose of a futures related to title companies.37 Reserve Account as security for a loan to the broker dealer by the bank.40 commission merchant’s business 1031 Like-Kind Exchanges. Some relationship with its customers is to deposits are placed at banks by financial The primary purpose of the broker dealer’s business relationship with its facilitate the buying and selling of intermediaries known as ‘‘qualified futures and other investment products intermediaries’’ or ‘‘QIs.’’ Under section customers is to facilitate the buying and selling of securities on behalf of on behalf of customers. As part of that 1031 of the Internal Revenue Code (26 relationship, the futures commission U.S.C. 1031), the role of a QI is to customers. As part of that relationship a broker dealer is required to establish facilitate the exchange of ‘‘like kind’’ 41 See, FDIC Staff Advisory Opinion 94–39 (Aug. properties on behalf of clients known as 17, 1994). To the extent that the balance of a Special 38 See id. Reserve Account is owned by the broker dealer and ‘‘exchangers.’’ Pursuant to a written 39 17 CFR 240.15c3–3(e), 240.15c3–3a. The agreement, the QI acquires property only becomes owned by its customers when a amount required to be held in the Special Reserve liquidating agent of a failed broker dealer is from the exchanger and then arranges Account is determined pursuant to an SEC formula appointed and distributes the funds to all customers for its resale. With the proceeds, the QI where, for each customer, the broker dealer adds up on a pro rata basis, then the broker dealer would acquires another property and then free credit balances and other credits in the not be a third party placing or facilitating the account, and then reduces that number by certain placement of funds of others, and would be outside transfers it to the exchanger. If the debits. The broker dealer then aggregates the the scope of the deposit broker definition. The FDIC transaction is handled properly, the calculation for all customers and this aggregate is not addressing the ownership of Special Reserve exchanger receives favorable tax represents the amount that a broker dealer must Accounts in this final rule. keep, in cash or qualified securities, in the Special 42 17 CFR 1.20(a). The formula set in CFTC treatment. Reserve Account at a bank. Id. Before the QI uses the proceeds of the regulations calls for the amount to be maintained ‘‘Free credit balances’’ are defined as liabilities of in the segregated customer account the market first property to purchase the second a broker or dealer to customers which are subject value of futures customer funds subject to certain property, the funds are held by the QI to immediate cash payment to customers on adjustments. 17 CFR 1.20(i). ‘‘Futures customer in a deposit account at a bank. In this demand, whether resulting from sales of securities, funds’’ include all money, securities, and property dividends, interest, deposits or otherwise, and can received by a futures commission merchant from, case, the primary purpose of the QI’s include funds carried in a certain securities for, or on behalf of, futures customers to margin, account, including variation margin or initial guarantee, or secure contracts for future delivery on 36 See generally, FDIC Staff Advisory Opinion 92– margin, marks to market, and proceeds resulting or subject to the rules of a contract market or 78 (Nov. 10, 1992); see also FDIC Staff Advisory from margin paid or released in connection with derivatives clearing organization, as the case may Opinion 17–02 (June 19, 2017). closing out, settling or exercising futures contracts be, and all money accruing to such futures 37 See FDIC Staff Advisory Opinion 17–02 (June and options thereon. 17 CFR 240.15c3–3(a)(8). customers as the result of such contracts.’’ 17 CFR 19, 2017). 40 17 CFR 240.15c3–3(e). 1.3.

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merchant is required to establish a may place funds directly with IDIs into into depository institutions pursuant to Segregated Customer Account to HSAs, or, their funds may be placed section 529 of the Internal Revenue provide customer protection in the into HSAs through employers that Code will meet the primary purpose event of a futures commission utilize third party administrators that exception and qualify for a designated merchant’s liquidation. Thus, to the manage HSA programs. As part of those exception. extent that the balance of a Segregated management services, the third party Deposits Placed in a Retirement Customer Account is owned by the administrator places, or facilitates the Account Not Part of an Employee firm’s customers at the time funds are placement of, deposits at IDIs directly Benefit Plan deposited into it, such arrangement from employer payroll accounts. Funds meets the primary purpose exception in a designated HSA are intended to be Section 29 contains an express and qualify for a designated exception.43 used by the depositor for payment of exception from the deposit broker The FDIC is aware of other deposit qualified medical expenses. The definition for trustees of a pension plan arrangements in which entities place primary purpose of the third party or other employee benefits plan and for deposits as required under federal or administrator’s relationship with its plan administrators and investment state law. While the FDIC does not have customers is to assist in placing advisors of such plans.47 Section 29 also sufficient knowledge of such customer funds into HSAs to facilitate provides an express exception for a arrangements to grant designated the payment for or reimbursement of trustee or custodian of a pension or exceptions for such arrangements in this qualified medical expenses. profitsharing plan qualified under final rule, the FDIC expects it would Accordingly, under this final rule, section 401(d) or 403(a) of the Internal approve an application for a primary entities that place, or facilitate the Revenue Code.48 A commenter purpose exception under such placement of, customer funds into HSAs requested that the primary purpose circumstances when the primary pursuant to section 223 of the Internal exception apply with respect to purpose is not the placement of Revenue code meet the primary purpose individual retirement accounts. deposits. The FDIC will consider exception and qualify for a designated Congress has provided similar tax identifying specific such arrangements exception. incentivized treatment for other as designated exceptions in the future if The FDIC is aware that not all retirement account arrangements that do warranted. individuals with funds in an HSA use not meet the definition of Employee those funds only for qualified medical Benefit Plan or the pension and Deposits Placed as Required Collateral expenses. Nonetheless, the FDIC is profitsharing plans referenced in section for Credit-Card Loans persuaded that the primary purpose of 29. Such arrangements include a Some deposits are placed at insured HSA fund administrators is to enable traditional IRA, Simple IRA, and Roth depository institutions by third parties the payment of qualified medical IRAs. The primary purpose of an entity that offer secured credit-card loans to expenses. However, the FDIC will who places deposits in association with their customers. The loans are secured continue to monitor the evolution and such plans is to enable participation in by deposits belonging to the customers use of HSA accounts over time. If at the retirement program and not place and held at insured depository some point in the future, the primary deposits at IDIs. Accordingly, the FDIC institutions as required collateral that is purpose of HSA administrators has is establishing a designated exception typically capped to the amount of the evolved to something other than for such plans.49 credit line granted to the customer by enabling transactions related to Deposits Placed by Agencies To the third party. Under this final rule, the qualified medical expenses, the FDIC Disburse Government Benefits primary purpose of the third party’s may reevaluate whether this designated relationship with its customers is to exception is still warranted. Any Federal, state or local agencies provide consumers access to credit card changes would be made through notice (‘‘Agencies’’) sometimes use debit or loans and not to place deposits with and comment rulemaking. prepaid cards to deliver funds to the IDIs. Accordingly, under this final rule, beneficiaries of government programs. third parties that place customer funds Deposits Placed for Qualified Tuition In some cases, such programs are into depository institutions as collateral Programs Under Section 529 of the structured so that each beneficiary will for their customers to secure credit card Internal Revenue Code own a separate deposit account at loans will meet the primary purpose Some deposits are placed at IDIs by particular insured depository exception and qualify for a designated states, state agencies, or educational exception. This outcome is consistent institutions as part of qualified tuition 47 12 U.S.C. 1831f(g)(2)(D) and (E). Because the with previous staff advisory opinions.44 plans (or ‘‘529 plans’’). A 529 plan is a exceptions for trustees, plan administrators, and tax-advantaged savings plan designed to investment advisers for pension plans and other Deposits Placed To Pay for or To employee benefit plans are provided in separate encourage saving for future education Reimburse Qualified Medical Expenses statutory exception and are not related to the costs.46 The individual contributions for primary placement exception, no notice or Under Section 223 of the Internal a 529 plan may be invested in a variety application requirement would apply. Revenue Code 48 of financial products, including deposit 12 U.S.C. 1831f(g)(2)(H). Some deposits are placed with IDIs on products. The primary purpose of the 49 This treatment for IRAs and other retirement behalf of customers participating in plans that are not part of an employee benefit plan state, state agency, or educational is consistent with how the FDIC viewed such health savings accounts (HSAs). institution’s relationship with its accounts in a 1984 final rule, along with the Federal Individuals that participate in an HSA investors is to provide a tax-advantaged Home Loan Bank Board, when it adopted the can use those funds to pay for or savings plan designed to encourage definition of ‘‘deposit broker’’ upon which the current statutory definition is based. reimburse qualified medical expenses saving for future education costs and with certain tax benefits.45 Individuals The insurance coverage currently available to not the placement of deposits. deposits held in connection with pension funds and Accordingly, under this final rule, other employee benefit plans will not be affected by 43 See FDIC Staff Advisory Opinion 17–02 (June states, state agencies, or educational the rule unless such deposits are placed by or 19, 2017). through a deposit broker. In addition, trustees and 44 See FDIC Staff Advisory Opinion 94–13 (Mar. institutions that place investor funds custodians of IRA and Keogh accounts will not be 11, 1994). deemed to be deposit brokers. 49 FR 13003, 13009 45 26 U.S.C. 223. 46 26 U.S.C. 529. (Apr. 4, 1984). (emphasis added)

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institutions (with the account being requirements and timing for the facilitates the placement), which would accessible by the beneficiary through application process is provided in be evaluated as a separate business line. the use of a debit card). Other programs section I(C)(3)(d) of this notice. The FDIC is finalizing this aspect of may be structured so that multiple The FDIC expects to make publicly the proposed rule as proposed. beneficiaries will own a commingled available on the FDIC’s website (1) Accordingly, consistent with the intent deposit account with ‘‘per beneficiary’’ redacted summaries of certain approved of Section 29 (and part 337 of the FDIC’s or ‘‘pass-through’’ deposit insurance applications, as soon as practicable, and regulations), brokered CDs, as has been coverage. In these scenarios, the Agency (2) a list of additional designated the case since 1989, will be considered brokered. Deposits related to brokered is involved in choosing IDIs or opening exceptions, to the extent applicable, that CDs will not be included for purposes deposit accounts to assist in the will describe additional business of determining whether a person’s other disbursement of funds to beneficiaries, arrangements not described in this business lines meet the primary purpose as mandated by law. These accounts are rulemaking that the FDIC in the future exception. also limited to the placement of funds determines meet the primary purpose for a designated government benefit exception without requiring an 2. Deposit Placements for Purposes of program and may not be commingled application. Redacted summaries Encouraging Savings with the beneficiary’s other funds available on the FDIC’s website will outside of the government benefit In the Brokered Deposits NPR, the typically describe business relationships program. The primary purpose of the FDIC proposed that the FDIC would not not discussed in this final rule that the Agency’s relationship with beneficiaries grant a primary purpose exception if the FDIC has determined to meet the is to discharge its legal obligation by third party’s primary purpose for its primary purpose exception and may be disbursing funds as part of a business relationship with its customers cited as support in applications for the government program. Accordingly, is to place (or assist in the placement of) primary purpose exception in certain under this final rule, Agencies that funds into deposit accounts to circumstances. Designated exceptions place funds for beneficiaries of ‘‘encourage savings,’’ ‘‘maximize yield,’’ identified following this rulemaking government programs will meet the ‘‘provide deposit insurance,’’ or any may be relied upon, without an primary purpose exception and qualify similar purpose. The FDIC expressed for a designated exception. application, by any agent or nominee concern that these types of services that meets the published criteria. The could evade the purposes of section 29. C. Other Business Relationships FDIC would also note on the website The FDIC is finalizing this aspect of Under the final rule, agents or whether a notice and/or any ongoing the proposed rule as proposed. It is the nominees that meet the ‘‘deposit reporting will be required with respect FDIC’s view that there is no meaningful broker’’ definition, but do not qualify for to a new designated exception. distinction between a primary purpose a designated exception, may submit an The FDIC intends for the application of ‘‘encouraging savings,’’ ‘‘maximizing application to the FDIC. The FDIC will process to promote transparency and yield,’’ ‘‘providing deposit insurance,’’ review whether the applicant consistency for entities seeking to use or any similar purpose and a primary sufficiently demonstrates that the the primary purpose exception for purpose of placing funds into a deposit primary purpose of the agent or business relationships that do not account. Furthermore, granting a nominee is something other than the qualify for a designated exception. In primary purpose exception based on placement, or facilitating the placement, addition to transparency and such rationales could result in all of funds at insured depository consistency for the public, the deposit arrangements satisfying the institutions. As noted above, in application process is intended to primary purpose exception, which conducting this review, the FDIC will enhance FDIC’s ability to protect the would not be consistent with section 29. specifically look at the primary purpose DIF and promote safety and soundness, As such, third parties that either place of the business relationship between the particularly with respect to new or or assist in the placement of deposits to agent or nominee and its customers, novel business arrangements. provide these core deposit-placement with respect to a particular business services for its customers will not line. For example, offering loans or a D. Business Relationships Ineligible for qualify for the primary purpose range of lending products, could be the Primary Purpose Exception exception. described in the application as the 1. Deposit Placements of Brokered CDs The FDIC notes that one of the primary purpose of a business designated exceptions is for 529 plans relationship, if lending is a more In the Brokered Deposits NPR, the in which the primary purpose is to significant portion of a particular FDIC stated that it would continue to encourage savings for future education business line than placing, or consider a person’s placement of costs as part of a tax-advantaged savings facilitating the placement of, deposits is. brokered CDs (as described in the third plan. While a primary purpose of As part of its review, the FDIC will, as prong to the deposit broker definition encouraging or enabling savings does proposed, consider the following and as discussed above) as deposit not generally qualify for the primary factors: (1) The revenue structure for the brokering. Under the proposal, for purpose exception for the reasons agent or nominee; (2) whether the purposes of establishing the person’s described above, encouraging savings as agent’s or nominee’s marketing primary purpose, the person’s part of a specific tax-incentivized activities to prospective depositors is placement of brokered CDs would be government program, similar to 529 aimed at opening a deposit account or considered a discrete and independent plans, may qualify. to provide some other service, and if business line from other deposit there is some other service, whether the placement businesses. Thus, the E. Evaluation of Business Lines opening of the deposit account is primary purpose for that particular As noted in the Brokered Deposits incidental to that other service; and (3) business line would always be the NPR, the analysis and assessment of the fees, and type of fees, received by an placement of deposits at depository discrete business lines is an important agent or nominee for any deposit institutions, even if the person may not aspect of whether certain agents or placement service it offers. A detailed be considered a deposit broker for other nominees meet the primary purpose discussion of the specific content deposits that it places (or for which it exception. In evaluating whether an

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applicant meets the requirements of the nominees who are nonfinancial processing under the application primary purpose exception, the FDIC companies, the identification of a process. The FDIC is revising this part would analyze specific business lines in business line will be simple and of the proposed application process and, which the applicant has a specific type straightforward, and in some cases may under the final rule, will no longer of relationship with its customers. This encompass an entire business. require applications for those two was intended to prevent an agent or business relationships or for the F. Involvement of Other Third Party nominee engaged in the brokering of additional designated business Intermediaries deposits from evading the statutory relationships described in this final restrictions by adding or combining its If an agent or nominee qualifies for a rule. The purpose of this change from brokering business with another statutory exception from the deposit the proposal is to streamline the process business such that the deposit broker broker definition, it is possible that one for entities (or business arrangements) business is no longer its primary or more additional third parties that are that meet a bright-line primary purpose purpose. Under the proposed rule, the engaged in the business of placing, or exception. In other words, the FDIC has term business line would refer to the facilitating the placement of, customer already evaluated these business business relationships an agent or deposits may qualify as a deposit relationships as part of this rulemaking nominee has with a group of customers broker. The FDIC understands that, in process and has determined that they for whom the business places, or certain deposit placement arrangements, meet the primary purpose exception. As facilitates the placement of, deposits. agents or nominees may use third party such, entities will not need to go Commenters who addressed the intermediaries (and in some cases a through an application process if they proposed definition of ‘‘business line’’ number of them) to provide are placing, or facilitating the placement raised concerns that the proposed administrative functions. To the extent of, deposits as part of a business definition does not reflect how that these third party intermediaries do relationship that is a designated businesses view their business lines. not meet the deposit broker definition, exception under this final rule. Specifically, commenters suggested that then deposits placed at IDIs via an agent the FDIC permit the third party to or nominee that meet an exception to a. Notice Requirement identify one or more business lines for the definition of deposit broker (for For two of the designated purposes of the application process, so example, the primary purpose exceptions—the ‘‘25 percent’’ and the that the business line would reflect risk exception), will be nonbrokered. If, ‘‘enabling transactions’’ business management and reporting policies and however, the third party intermediary relationships—the FDIC is requiring that procedures utilized by the third party. is, for example, providing matchmaking third parties submit a written notice to These commenters expressed the view functions for the agent or nominee and the FDIC indicating that the third party that the third party, rather than the insured depository institutions, as will rely upon the applicable designated FDIC, should have discretion to defined in this final rule, then it would exception.50 The notice may also be determine specific business lines, as meet the ‘‘facilitation’’ part of the submitted by an insured depository business lines will vary significantly deposit broker definition, and the institution that is receiving deposits across different entities. One commenter deposits placed by or through the from the third party. noted that business line information is intermediary would be brokered Upon the FDIC’s receipt of the notice, generally proprietary and confidential deposits, regardless of the status of the the third party that is the subject of the and thus third parties may not be agent or nominee. notice may rely upon the applicable willing to provide such information. In the case of the primary purpose designated exception for a particular The FDIC expects that entities that exception, IDIs that receive deposits business line. The FDIC will establish submit a notice or application for the from agents or nominees that meet the an electronic process for the receipt of primary purpose exception should, in primary purpose exception should be notices. This process will include good faith, determine their appropriate, aware of any other third parties providing the notice filer with an specific business lines. The FDIC, in involved in the placement of deposits immediate acknowledgement of receipt. reviewing a particular business and whether those other third parties The FDIC may, however, at its arrangement for the primary purpose meet the deposit broker definition in discretion, and at any time, including exception, will generally defer to the order to properly complete their during the supervision and examination descriptions of business lines provided Consolidated Reports of Condition and of an insured depository institution, by the applicant or notice-filer. Income (‘‘Call Reports’’), which require require the notice filer to provide Nonetheless, the determination of what reporting of brokered deposits held by additional information. Such requests constitutes a business line will depend IDIs. If such other third parties meet the generally will be limited to verifying on the facts and circumstances of a definition of deposit broker, deposits that the third party meets the criteria for particular deposit placement placed by or through that third party are the applicable designated exception, arrangement, and the FDIC ultimately considered brokered. and the FDIC generally expects to only retains discretion to determine the See section I(C)(3)(h) for further make such requests if there is reason to appropriate business line to which the discussion of this topic in the context of believe that the third party does not primary purpose exception would designated exceptions subject to the meet, or no longer meets, the criteria for apply. The FDIC is more likely to notice requirement and the application the applicable designated exception. scrutinize the identification of a process. The FDIC also may occasionally request business line if the business other information, such as descriptions relationships to which it refers are 3. Notice and Application Process for of the services provided by any materially broader than the business the Primary Purpose Exception additional third parties involved in the relationships with the specific group of Under the proposal, entities that place customers for whom the business deposits at insured depository 50 Entities that qualify for other designated places, or facilitates the placement of, institutions under the business exceptions detailed above are not subject to a notice, application, or reporting process. The deposits. relationships that were deemed to meet applicable specific contents for the two types of The FDIC expects that in many cases, the primary purpose exception would notice submissions are provided in section particularly in the case of agents or have been subject to expedited I(C)(3)(b).

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deposit placement arrangement that that the notice is filed. For third parties nominee will be considered to meet the may meet the deposit broker that meet the primary purpose primary purpose exception for a definition.51 The FDIC will only request exception based on the ‘‘25 percent’’ particular business line. information specifically relevant to designated exception the applicable As mentioned, an applicant may be an whether or not the deposits being specific contents are: insured depository institution that placed are brokered. If the FDIC learns Æ The total amount of customer assets applies to the FDIC on behalf of a third that the entity no longer meets the under administration by the third party party seeking a determination that the criteria of the designated exception or for that particular business line; and third party meets the primary purpose that information provided in a notice or Æ the total amount of deposits placed exception. In this case, if appropriate, subsequent reporting was inaccurate, or by the third party on behalf of its the FDIC will evaluate the third party’s the entity fails to submit required customers, for that particular business relationships with all IDIs in which the reports, the FDIC may, with notice, line, at all depository institutions.53 third party places, or facilitates the revoke the entity’s primary purpose For third parties that meet the placement of, deposits. An approval that exception.52 primary purpose exception based on the a third party meets the primary purpose The FDIC is requiring a notice for the ‘‘enabling transactions’’ designated exception based on an application by an ‘‘25 percent’’ and ‘‘enabling exception the applicable specific IDI on behalf of the third party might be transactions’’ designated exceptions, contents are: applicable to all deposit placements by and not for the other designated Æ Contractual evidence that there is that third party at any other IDI(s) to the exceptions identified in this final rule, no interest, fees, or other remuneration extent that the deposit placement because eligibility for those two being paid to any customer accounts, arrangements with the other IDI(s) are designated exceptions would be and the same as the arrangement between difficult for the FDIC or an IDI to verify Æ a certification that all customer the applicant and the third party. The or monitor without access to the deposits are in transaction accounts. FDIC is of the view that that an agent contents of the notice (which are Third parties, or insured depository or nominee who seeks a primary described below). The other designated institutions, that submit a notice under purpose exception is likely to apply on exceptions generally relate to more the ‘‘25 percent’’ test will be required to its own behalf, given that the specific deposit placement provide reporting on a quarterly basis to information required to complete an arrangements and describe criteria that the FDIC. The report will need to application will be in possession of the are less difficult to verify or monitor. include updates to the figures that were agent or nominee. The FDIC may, or may not, also decide provided as part of the original notice Under the proposal, applicants would to require a notice for any additional submission. have received a written determination designated exceptions that are identified For those that submit a notice under from the FDIC within 120 days of a after the issuance of this final rule, and the ‘‘enabling transactions’’ test, the complete application, unless extended the FDIC expects such decisions to be filing entity will need to provide an by the FDIC with notice if necessary. A based on similar analysis to that annual certification that the third party commenter requested more clarity described in this paragraph. continues to place all customer funds at around the proposed timeline, and The final rule also requires that third depository institutions into transaction suggested additional timelines for parties that notified the FDIC of reliance accounts and that customers do not certain steps in the process. The FDIC on a designated exception submit a receive or accrue any interest, fees, or is providing additional clarity, subsequent notice to the FDIC if the other remuneration. consistent with the intent of the third party no longer meets the primary proposal, that the FDIC will notify an c. Overview of the Application Process purpose exception. applicant within 45 days of submission The FDIC is finalizing the proposed if an application is not complete, and b. Notice Contents and Reporting application process for entities that seek that an extension, if necessary, beyond Requirement to qualify for the primary purpose the initial 120 days may last for a The written notice that an entity exception but that do not meet a maximum of 120 additional days. submits will need to include (1) the designated exception. As part of this The FDIC will approve applications designated exception upon which the process, an entity can submit an submitted under this process if the entity is relying; (2) a brief description application to the FDIC. For purposes of application demonstrates to the FDIC’s of the business line; (3) the applicable the application process, the term satisfaction, with respect to the specific contents for the designated ‘‘applicant’’ includes an insured particular business line under which the exception; (4) a statement that there is depository institution or a nonbank third party places or facilitates the no involvement of any additional third third party 54 that meets the ‘‘deposit placement of deposits, that the primary party who qualifies as a deposit broker, broker’’ definition by either placing (or purpose of the third party, for that or a brief description of any additional facilitating the placement of) customer business line, is a purpose other than third party that may qualify as a deposit deposits at insured depository the placement or facilitation of broker; and (5) if the notice is provided institutions and that seeks to be placement of deposits. Approved by a nonbank entity, a list of the IDIs excluded from that definition through applicants may be subject to periodic that are receiving deposits by or through the primary purpose exception. If an reporting requirements to enable the the particular business line at the time application is approved, the agent or FDIC to ensure that the applicant continues to meet the exception. 51 See section I(C)(3)(h) for further discussion on 53 The total amount of deposits placed by the requests for additional information related to third party should be exclusive of the amount of d. Application Contents additional third parties. brokered CDs being placed by the third party, An application must include, to the 52 which is treated as a separate business line. If a primary purpose exception is revoked due 55 to an inaccurate notice or report, or due to a failure 54 The FDIC will look to each separately extent applicable, at a minimum: to submit a required report, but the entity continues incorporated legal entity as its own ‘‘third party’’ to satisfy the criteria of the designated exception, for purposes of this application process. IDIs may 55 A description of the application contents for the entity may refile a notice with accurate submit an application on behalf of a third party that agents or nominees seeking the primary purpose information. is placing deposits with the IDI. Continued

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(1) A description of the deposit specific reporting requirements, been approved to provide additional placement arrangements between the including the frequency and any information. Such requests generally third party and insured depository calculation methodology, as part of its will be limited to verifying that the institutions for the particular business written approval for a primary purpose entity continues to satisfy the terms of line, including the services provided by exception. The FDIC does not expect to the approved application, and the FDIC any relevant third parties; require ongoing reporting in all cases. generally expects to only make such (2) A description of the business line The FDIC will decide whether to require requests if there is reason to believe that for which the applicant is filing an reporting, and tailor such reporting if the entity does not meet, or no longer application; appropriate, on a case-by-case basis, meets, the terms of the approved (3) A description of the primary depending on the type of information application. The FDIC also may purpose of the particular business line; that the FDIC relies upon to determine occasionally request other information, (4) The total amount of assets under that a particular agent or nominee meets such as the services provided as part of administration by the third party; the primary purpose exception. the deposit placement arrangement by (5) The total amount of deposits Reporting will not be required more any additional third parties that may placed by the third party at all insured frequently than quarterly. meet the deposit broker definition. The depository institutions, including the FDIC will only request information f. Monitoring for IDIs amounts placed with the applicant, if specifically relevant to whether or not the applicant is an insured depository Under the proposed rule, an IDI that the deposits being placed are brokered. institution. This includes the total accepted deposits from a third party that If the FDIC learns that the entity no amount of term deposits and relies upon the primary purpose longer meets the terms of the approved transactional deposits placed by the exception would have been responsible application, for example because the third party, but should be exclusive of for monitoring the nonbank third party’s entity has undergone material changes the amount of brokered CDs being eligibility for the primary purpose to its business that renders the business placed by that third party; exception. The proposal further noted no longer eligible for the primary (6) Revenue generated from the third that when establishing a contractual purpose exception, or that information party’s activities related to the relationship with a nonbank third party provided in an application or placement, or the facilitating of the for the placement of deposits that may subsequent reporting was inaccurate, placement, of deposits; be classified as nonbrokered due to the the FDIC may, with written notice and (7) Revenue generated from the third primary purpose exception, the IDI may adequate justification, require the entity party’s activities not related to the wish to consider the reporting and to submit a new application for placement, or the facilitating of the monitoring requirements described approval, impose additional conditions placement, of deposits; here. The FDIC received a number of on the previously granted approval, or (8) A description of the marketing comments that these expectations withdraw a previously granted activities provided by the third party to would be difficult to manage or approval. prospective depositors; unworkable. Given the potential volume A commenter requested that the FDIC (9) The reasons the third party meets of third parties that could qualify for the clarify that the FDIC would only modify the primary purpose exception; primary purpose exception, and the or withdraw an approval if there is a (10) Any other information the idiosyncratic business models that such material change in the facts or applicant deems relevant; and third parties may have, the FDIC agrees circumstances relied on by the FDIC in (11) Any other information that the that this expectation is not appropriate. granting its initial approval. As noted FDIC determines is necessary to Instead, under the final rule, an IDI that above, the FDIC would modify or complete its review. accepts deposits from a third party that withdraw an application if the FDIC The application also should include relies on the primary purpose exception learns that the entity no longer meets supporting documentation and relevant would be expected to be able to access the terms of the approved application or contracts related to the items above. The records of the nonbank third party’s if information provided in an FDIC retains authority to request eligibility for the primary purpose application or subsequent reporting was additional information at any time exception, including copies of the inaccurate. Additionally, the FDIC during its review. The FDIC’s review of notices delivered to the FDIC and any generally expects to give an entity with whether a third party meets the primary accepted applications. The FDIC also an approved application an opportunity purpose exception will be based on the expects that if an IDI has reason to to reapply or adjust its business application and all supporting believe that a third party that qualified relationships prior to withdrawing, or information provided. for a primary purpose exception no imposing additional conditions, on a longer qualifies for the primary purpose previously granted approval. e. Reporting for Approved Applicants exception, for example due to a change h. Additional Third Parties Approved applicants may be subject in business model, the IDI would notify to periodic reporting requirements. the FDIC and its primary financial As noted above, the FDIC may request These reporting requirements will allow regulator and report the deposits as additional information following the the FDIC to monitor the applicability of brokered. filing of a notice or application about the primary purpose exception and additional third parties involved in the ensure that the FDIC is aware of any g. Requesting Additional Information, arrangement. If the FDIC finds that a material changes to the criteria under Requiring Re-Application, Imposing third party applicant or notice filer (or which the FDIC approved the Additional Conditions, and a third party on whose behalf an IDI has application. The FDIC will describe Withdrawing Approvals submitted a notice or application) meets At any time after approval of an the primary purpose exception, but exception under the ‘‘enabling transactions’’ application, the FDIC may, at its another third party involved in the business relationship because they place all discretion, and at any time, including arrangement meets the deposit broker customer deposits at depository institutions into transactional accounts but the customer earns some during the supervision and examination definition, the FDIC would notify the amount of interest, fees or other remuneration are of an insured depository institution, applicant and the other third party of provided in section I(C)(2)(b)(ii)(A)(2). require an entity whose application has this finding. The absence of such a

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finding does not mean that no on the primary purpose exception the opinions, while a second banker stated additional third party meets the deposit option to continue to rely on existing that the FDIC should maintain all broker definition. The FDIC expects to staff advisory opinions or other advisory opinions to avoid dismantling request such additional information and interpretations that predated this final established partnerships with industry make such findings only in certain rule until January 1, 2022. After that participants who rely on current circumstances, and not on a regular or date, such entities will no longer be advisory opinions to provide their frequent basis, and entities should not permitted to rely on existing staff services to banks. Still another banker rely on the FDIC to decide whether advisory opinions or other suggested that the FDIC codify certain additional third parties are deposit interpretations that predated this final long-standing, frequently relied-upon brokers. rule and must have an application, if advisory opinions and repeal or update appropriate. outdated advisory opinions. 4. Effective Date and Extended A few commenters also addressed the Compliance 5. Prior FDIC Staff Advisory Opinions process of reviewing and rescinding, or Except as specifically provided here, In the Brokered Deposits NPR, the codifying, any advisory opinions. A the final rule will take effect on April 1, FDIC indicated that it would review state bankers’ association called on the 2021, and will be reflected in Call existing advisory opinions to determine FDIC to publicly indicate which Report Data due June 30, 2021. Full those that should be codified in the final advisory opinions would remain and compliance with the regulation is rule and those that are outdated and allow a three-year transition to conform extended to January 1, 2022. The should be rescinded. This section to the new rule. A national trade group extended compliance date is intended to reviews and discusses the comments representing the banking industry provide sufficient time for financial relating to prior FDIC staff advisory suggested that the FDIC implement a institutions to put in place systems to opinions. The FDIC notes, however, that formal notice and comment process for implement the new regulatory regime this final rule will allow certain entities rescission of advisory opinions, and and to allow the FDIC to develop that have relied upon previous staff stated that any exemptions from internal processes and systems to ensure opinions regarding the primary purpose previously granted advisory opinions a consistent and robust review process. exception to continue to rely upon the should remain in effect. The commenter Notices. Starting April 1, 2021, an primary purpose exception under further stated that any exemptions that entity that wishes to rely upon a designated exemptions described.56 are revoked should have a 3-year designated exception for the primary Moreover, and as provided above in transition period. A second bank trade purpose exception described in this section I(C)(4), the FDIC will allow association wrote that the FDIC should final rule that requires a notice entities to continue to rely upon all only rescind the advisory opinions after submission must file a notice, and previous staff advisory opinions related a notice and comment period. comply with any applicable reporting to brokered deposits until January 1, b. Final Rule Discussion of Prior Staff requirements. However, the full 2022. compliance date of January 1, 2022, will Advisory Opinions allow entities to continue to rely upon a. Comments on Prior FDIC Staff As part of this rulemaking process, existing staff advisory opinions or other Advisory Opinions the FDIC evaluated all previous FDIC interpretations that predated this final A significant number of commenters staff advisory opinions related to rule in determining whether deposits addressed this aspect of the Brokered brokered deposits to identify those that placed by or through an agent or Deposits NPR. Of those who are no longer relevant or applicable nominee are brokered deposits. After commented, the majority urged the based upon the revisions made as part January 1, 2022, entities may no longer FDIC to grandfather all existing advisory of this final rule. The FDIC also, as part rely on upon staff advisory opinions or opinions, particularly those opinions of its review, evaluated whether other interpretations that predated this where the staff had previously previous FDIC staff advisory opinions final rule, and to the extent that such interpreted the primary purpose may continue to be relied upon and may entities instead opt to rely on a exception as applying. A few be applicable under the new framework designated exception for which a notice commenters identified specific advisory of this final rule. As a result of this review, the content is required, a notice must be filed. After opinions that they believed should be of some of the opinions have been January 1, 2022, the advisory opinions retained or codified, but the general included in this final rule.57 However, and other publicly available view was that all advisory opinions upon the full compliance date of the interpretations set forth in Appendix 1 should continue to be available and final rule (January 1, 2022), previous to this notice will be moved to inactive active. staff advisory opinions will be moved to status. One banker recommended that the inactive status on the FDIC’s website.58 Applications. Similarly, starting April FDIC retain existing advisory opinions The FDIC recognizes that given the 1, 2021, entities that wish to apply for that conclude that specific company significant changes in the regulation, it a primary purpose exception, as activities do not make the company a is likely that in most, if not all, cases, described in section I(C)(3)(c–g), may deposit broker, while several other the analysis contained in the various submit an application starting on that bankers urged the FDIC to grandfather advisory opinions will no longer date. The FDIC will begin its application all relationships based on current accurately reflect the regulation, even review as soon as possible, but no later advisory opinions and suggested that than September 3, 2021. Written though in many cases the result will be such relationships be exempt from the the same. Codifying all previous staff determinations for applications definition of deposit broker. One banker submitted on or before September 3, opinions would thus result in the stated that firmly-established business existence of two parallel regulatory 2021, will be provided by January 1, relationships should be protected by 2022 (consistent with the 120-day maintaining all existing FDIC advisory review period), unless extended, with 57 See discussion on ‘‘designated exceptions’’ in notice, if necessary. As stated above, section I(C)(2)(b)(ii)(A)–(B). 56 A discussion of the primary purpose exception 58 See list of publicly available FDIC staff however, the full compliance date and the advisory opinions provided in section advisory opinions and FILs related to section 29 in provision will allow entities who rely I(C)(2)(b)(ii)(B). Appendix 1.

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regimes for brokered deposits that they took actions that meet one of the purpose exception through the would make it difficult for entities and three prongs of the ‘‘facilitation’’ application process provided in this banks to understand the interpretations definition. Under the definition of final rule, and the application would be that apply for their particular deposit facilitation, it is unlikely that a third approved if the trust company placement arrangement. Instead, the party that is, for example, providing demonstrated that providing traditional FDIC has (1) provided additional clarity general marketing or advertising trust services, rather than placing on the ‘‘facilitation’’ part of the deposit services on behalf of a bank (e.g., deposits, was the trust company’s broker definition and (2) included in its providing a link on its website) in primary purpose. list of designated exceptions a number exchange for a volume-based fee, will Companies that Provide Certain of the business arrangements that have meet the deposit broker definition. Software Services. Some companies previously been viewed by staff at the Entities that Design Deposit Products. provide accounting, cash management, FDIC to meet the primary purpose Some third parties design deposit and other administrative support via exception. In addition, and as noted products with special features, such as software services to clients. These earlier, the FDIC has established an deposit accounts that produce interest companies, on behalf of its clients, place extended compliance period for the or rewards based on account activity. If deposits at either one or a group of final rule to ensure that entities who are a company merely designs deposit preferred or partner banks that are impacted have ample time to adjust products or deposit accounts for banks, sometimes integrated with its software previous arrangements, if necessary. and markets the banks that offer the services. Because these companies place Those entities such as listing services, deposit products, it would not likely deposits at IDIs, they meet the definition marketing firms, or certain companies meet the deposit broker definition of ‘‘deposit broker.’’ Commenters, in that design their own deposit products unless it places deposits at more than response to the NPR, argued that such with special features, which have relied one IDI or meets one of the three prongs software companies (e.g., bankruptcy upon previous staff advisory opinions of the ‘‘facilitation’’ definition. management software companies) outside of the primary purpose D. Discussion of Certain Other Deposit should meet the primary purpose exception context to develop their Placement Arrangements Raised by exception because their primary business in a way to avoid meeting the Commenters relationship with its customers is to ‘‘deposit broker’’ definition, will need to provide accounting services and not the review the new criteria developed under In response to the NPR, some placement of deposits. The FDIC notes this final rule to determine whether commenters asked how deposits placed that software providers may place their current arrangements meet the through certain third parties would be customer deposits into transactional treated under the primary purpose deposit broker definition. Below is a accounts that pay no (or nominal exception. These arrangements are not discussion of these entities and how amounts of) interest, fees, or other being designated as meeting the primary they fit within this final rule. remuneration to the customer. As such, purpose exception, however, the FDIC Listing services. A ‘‘listing service’’ is these software providers may be eligible acknowledges that under certain a company that compiles information to meet the enabling transactions test for circumstances, an agent or nominee about the interest rates offered by banks the primary purpose exception. acting under one of these business on deposit products. Through the years, Additionally, a software provider that relationships could meet one of the staff at the FDIC have developed criteria places customer deposits, as described to help determine whether a ‘‘listing designated exceptions. Trust Companies. Trust companies above, at only one IDI would not qualify service’’ meets the ‘‘deposit broker’’ as a deposit broker. If such a software definition. Under this final rule, the that administer trusts sometimes place provider does not meet the enabling FDIC anticipates that whether a listing funds at IDIs while acting in a fiduciary transactions test and applies for a service, or a similar service that posts capacity for a number of clients and primary purpose exception, the FDIC information about bank rates, is a accounts. The FDIC understands that would approve the application if the deposit broker will likely depend on these trust companies invest their software provider demonstrates that whether the service meets the new customer assets under administration in providing software services, rather than criteria under the ‘‘facilitation’’ part of a variety of different investment placing deposits, is the primary purpose the deposit broker definition. Based products, which may include deposit of the business relationship. upon the new ‘‘facilitation’’ definition, accounts. As such, the FDIC believes a listing service that is passively posting that some trust companies will be E. Other Supervisory Matters Related to rate information and sending trade eligible to meet the primary purpose Brokered Deposits confirmations between the depositor exception under the ‘‘25 percent test’’ 1. Brokered Deposits and Assessments and the bank is unlikely to be a deposit because they place less than 25 percent broker. However, if a listing service of customer assets under administration In the proposed rule, the FDIC noted provides services that meet one of the at IDIs. Additionally, a trust company that it planned to consider three prongs of the ‘‘facilitation’’ that places customer deposits, as modifications to its deposit insurance definition, then it would be considered described above, at only one IDI would assessment regulations in light of the a deposit broker. not qualify as a deposit broker. changes made to the brokered deposits Entities that Provide Marketing Moreover, section 29 provides regulation. This was one of several Services. Some insured depository targeted statutory exceptions to the changes the FDIC was considering to institutions attempt to attract new ‘‘deposit broker’’ definition for specific make its large bank pricing model more depositors through advertising or trust activities and one for trust risk-sensitive. Given the economic referrals by third parties in exchange for departments of IDIs.59 Trust companies uncertainty surrounding the COVID–19 fees based upon the volume of deposits that place customer deposits with IDIs pandemic, the FDIC decided to placed. In these cases, and under the that do not qualify for any of the postpone consideration of such changes assumption that the deposits are being exceptions listed above will also be able to its deposit insurance assessment placed directly by the depositors, the to avail themselves of the primary pricing. As noted below, institutions third parties generally would not meet will be required to report to the FDIC or the ‘‘deposit broker’’ definition, unless 59 See 12 U.S.C. 1831f(g)(2). on the Call Report certain types of

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deposits that will not be considered appropriately on Call Reports.60 The (92.0 percent) of assets and almost $14.1 brokered deposits under the final rule. FDIC will work to ensure that any such trillion (90.4 percent) of domestic The FDIC plans to monitor the data decisions by examiners are made deposits.61 resulting from such reporting and will consistently. Additionally, this Traditional brokered CDs will consider in the future whether regulation addresses whether certain continue to be defined by the rule as modifications to deposit insurance deposits are considered brokered, but brokered deposits and subject to the assessment pricing related to certain nothing in this final rule changes the associated statutory and regulatory types of funding concentrations are FDIC’s or other federal regulators’ restrictions. Certain types of deposits, warranted, consistent with the statutory authorities under section 8 or section 39 notably deposits placed by agents or requirement that the assessments be of the FDI Act. nominees that meet one of the identified risk-based. ‘‘designated exceptions’’ or otherwise F. Alternatives satisfy criteria set forth in the revisions 2. Reporting of Certain Deposits on Call The FDIC is adopting these made in this final rule to the primary Reports comprehensive changes to the brokered purpose exception will not be deposit regulations after considering considered brokered deposits. The The proposed rule indicated that the comments received pursuant to the amount of deposits currently reported as FDIC will consider requiring reporting ANPR and NPR and evaluating brokered that may be re-designated as of deposits that are excluded from being alternative options for modernizing the non-brokered as a result of the rule may reported as brokered deposits because of regulations. The FDIC considered a be material. 62 However, a reliable the application of the primary purpose number of alternative approaches, estimate of this change in designation is exception. As part of the final rule including taking more incremental not possible with the information implementing a stable funding approaches through which more limited currently available to the FDIC. requirement for certain large banking changes would be made. Additionally, There are potentially five broad organizations (also known as the net the FDIC considered more narrowly categories of effects of the rule: Effects stable funding ratio or ‘‘NSFR’’) the revisiting certain existing staff on consumers and economic activity; FDIC, along with the Board of Governors interpretations to identify those that effects applicable to potentially any of the Federal Reserve System and the should be updated. However, the FDIC insured institution; effects applicable to Office of the Comptroller of the ultimately determined that the best less than well-capitalized institutions; Currency, stated their intent to revise course of action was to take a fresh, effects applicable to nonbank entities the Call Reports to obtain data that may holistic look at the regulations and that may or may not be deemed deposit help evaluate funding stability of sweep interpretations, and establish a new brokers; and reporting compliance deposits over time to determine their framework that reflects technological effects on covered entities. appropriate treatment under the and other changes in the banking 1. Consumers and the Economy liquidity regulations. The FDIC further industry over the past three decades and intends to monitor this information to is consistent with the FDI Act. The final rule amends the FDIC’s brokered deposit regulations to reflect assess the risk factors associated with G. Expected Effects sweep deposits and determine recent technological changes and assessment implications, if any. Any As described previously, the final rule innovations. The rule generates benefits changes to reporting requirements amends the FDIC’s regulations that to banks and consumers if deposit applicable to the Call Reports, and their implement provisions of section 29 placement arrangements that do not instructions, would be effectuated in regarding brokered deposits. The final present undue funding risk are not coordination with the Federal Financial rule creates a new framework for classified as brokered deposits. Changes Institutions Examination Council in a analyzing certain provisions of the and innovations in deposit placement statutory definition of ‘‘deposit broker.’’ separate Paperwork Reduction Act activity are likely to continue, Further, the final rule amends one of the notice. suggesting that demand for, and ten regulatory exceptions to the utilization of, certain types of deposit 3. Additional Supervisory Matters definition of ‘‘deposit broker.’’ The accounts currently classified as aggregate effect likely would be that brokered are likely to grow in the years The FDIC recognizes that, under the some amount of deposits currently to come. These could include the use of final rule, categories of deposits that are reported as brokered deposits will no technology services that help enable currently considered brokered will longer be so reported. payments and online marketing instead be nonbrokered. The FDIC will As of June 30, 2020, there were 5,075 channels that refer customers to certain continue to take such supervisory efforts insured depository institutions holding banks. To the extent that the rule results as may be necessary to ensure that approximately $21.2 trillion in assets in such deposits as being non-brokered, banks are operating in a safe and sound and $15.6 trillion in domestic deposits. it could support ease of access to manner. Nothing in the final rule is Of those domestic deposits, $1.2 trillion deposit placement services for U.S. intended to limit the FDIC’s ability to (7.7 percent) are currently classified as consumers. Unbanked or underbanked review or take supervisory action with brokered deposits. Approximately 38 customers, for example, may benefit respect to funding-related matters, percent (1,932) of FDIC-insured from increased ease of access to deposit including funding concentrations, that institutions reported some positive placement services because banks may affect the safety and soundness of amount of brokered deposits. These would be more willing to accept individual banks or the industry insured institutions accounted for the deposits that would be no longer generally. FDIC examiners will continue vast majority of banking industry assets considered brokered under the final to review funding as part of safety and and deposits—almost $19.5 trillion soundness examinations, regardless of 61 Call Report data, June 30, 2020. whether or not the deposits used by the 60 Examiners will not, however, require that an 62 A number of the ‘‘designated exceptions’’ IDI are brokered. Among other things, IDI treat a third party as a deposit broker if the third identified as meeting the primary purpose party has qualified for the primary purpose exception are based upon business relationships examiners will review whether banks exception through a designated exception or an that staff at the FDIC previously viewed as meeting are reporting their deposits approved application. the primary purpose exception.

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rule. Additionally, to the extent that the arrangements or that underlie prepaid could result if greater access to funding rule supports greater utilization of card programs, may be more based on a sources supported insured institutions’ deposits currently classified as brokered business relationship than on interest ability to provide credit. However, these deposits, but classified as non-brokered rate competition. Given limitations on effects are difficult to estimate because under the rule, it could increase the available data, however, historical the decision to receive third party funds available to insured depository studies have not been able to deposits depends on the specific institutions for lending to U.S. differentiate the experience of banks financial conditions of each bank, consumers. If the rule does result in an based on the different types of deposits fluctuating market conditions for third increase in bank lending, some accepted. To the extent the rule reduces party deposits, and future management associated increase in measured U.S. bankers’ perception of a stigma decisions. economic output would be expected, in associated with certain types of 3. Less Than Well-Capitalized part because the imputed value of the deposits, more institutions may be Institutions credit services banks provide is a incentivized to accept such deposits. component of measured GDP. The rule could incentivize the As discussed previously, the development of banking relationships acceptance of brokered deposits is 2. All Insured Institutions between banks and other firms. The new subject to statutory and regulatory The rule could immediately affect the opportunities could spur growth in the restrictions for banks that are not well 1,932 FDIC-insured institutions types of companies that provide deposit capitalized. Adequately capitalized currently reporting brokered deposits. placement services, particularly for banks may not accept brokered deposits Going forward, the rule could affect all third parties that receive the primary without a waiver from the FDIC, and 5,075 FDIC-insured institutions whose purpose exception, potentially resulting banks that are less than adequately decisions regarding the types of deposits in greater access to, or use of, bank capitalized may not accept them at all. to accept could be affected. deposits by a greater variety of As a result, adequately capitalized and The final rule benefits insured customers. It is difficult to accurately undercapitalized banks generally hold institutions and other interested parties estimate such potential effects with the less brokered deposits. By generally by providing greater legal clarity information currently available to the reducing the scope of deposits that are regarding the classification and FDIC, because such effects depend, in considered brokered, the rule allows not treatment of brokered deposits. As result part, on the future commercial well capitalized banks to increase their of this increased clarity, the final rule development of such activities. holdings of deposits that are currently reduces the extent of reliance by banks FDIC deposit insurance assessments reported as brokered but will not be and third parties on FDIC Staff Advisory would be affected by the changes, reported as brokered under the final opinions and informal written and potentially affecting any insured rule. As of June 30, 2020, there are only telephonic inquiries with FDIC staff. institution that currently accepts 10 adequately capitalized and This would have two important brokered deposits or might do so in the undercapitalized banks.64 These banks benefits. First, the likelihood of future. Since 2009, insured institutions hold approximately $2.5 billion in inconsistent outcomes, where some with a significant concentration of assets, $1.7 million in domestic institutions may report certain types of brokered deposits may pay higher deposits, and $21.7 million in brokered deposits as brokered and others do not, quarterly assessments, depending on deposits.65 These banks could be would be reduced. Second, to the extent other factors. To the extent that deposits directly affected by the rule in that they the classification of deposits as brokered currently defined as brokered would no could potentially accept more or or non-brokered can be clearly longer be considered brokered deposits different types of deposits currently addressed in regulation, the need for under this rule, a bank’s assessment designated as brokered. potentially time-consuming staff may decrease, all else equal. Certain Broadly speaking, with respect to analyses can be minimized. calculations required under the future developments, another aspect of The FDIC has heard from a number of Liquidity Coverage Ratio and NSFR brokered deposit restrictions is that, insured institutions that they perceive a rules applicable to some large banks consistent with their statutory purpose, stigma associated with accepting could also be affected by the rule. they act as a constraint on growth and brokered deposits. Historical experience Available data do not allow for a risk-taking by troubled institutions. has been that higher use of deposits reliable estimate of the amount of Conversely, as noted previously, access currently reported to the FDIC as deposits currently designated as to funding can prevent needless brokered has been associated with brokered that would no longer be liquidity failures of viable institutions. designated as such under the rule, and higher probability of bank failure and 4. Entities That May or May Not Be 63 consequently do not allow for an higher DIF loss rates. The funding Deposit Brokers characteristics of brokered deposits, estimate of effects on assessments or the however, are non-uniform. For example, reported Liquidity Coverage Ratio and The revisions to the brokered deposit brokered CDs are often used by bank NSFR. regulations would likely give rise to customers searching for relatively high Insured institutions could benefit some activity by nonbank third parties yields and safety with deposit from the rule by having greater certainty seeking to determine whether they are, insurance, rather than as part of a and greater access to funding sources or are not, deposit brokers under the relationship with a bank, and as such that would no longer be designated as these deposits may be less stable and brokered deposits, thereby easing their 64 Information based on June 30, 2020 liquidity planning in the event they fall Consolidated Reports of Condition and Income. The more subject to deposit interest rate 10 institutions do not include any quantitatively competition. The behavior of other below well capitalized and become well capitalized institutions that may have been types of deposit placement subject to the restrictions set forth in the administratively classified as less than well arrangements, such as deposits placed law and regulations and reducing the capitalized. See generally, FDIC—12 CFR likelihood that a liquidity failure of an 324.403(b)(1)(v); Board of Governors of the Federal through certain deposit sweep Reserve System—12 CFR 208.43(b)(1)(v); Office of otherwise viable institution might be the Comptroller of the Currency—12 CFR 63 See FDIC’s 2011 Study on Core and Brokered precipitated by the brokered deposit 6.4(c)(1)(v). Deposits, July 8, 2011. regulations. Another benefit of the rule 65 Call Report Data, June 30, 2020.

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rule. This may include submitting registered broker-dealer firms in 2019.66 ‘‘25 percent’’ business relationship will notices or filing applications by some Some of the 3,517 broker-dealers may be three hours to complete on average, third parties that seek to avail not engage in activity which would and 0.5 hours per quarter each year after themselves of the primary purpose meet the definition of ‘‘deposit broker’’ that. In the initial year of exception, or by banks submitting but for meeting the primary purpose implementation, the FDIC assumes that notices or filing applications on behalf exception through the ‘‘25 percent test,’’ the notice for the ‘‘enabling of third parties. In certain while some firms that do engage in such transactions’’ will take 5 hours to circumstances, ongoing reporting or activity may not be among the 3,517 complete on average, and 0.5 hours each certification by these entities is also FINRA registered broker-dealers. In the year after that. In the initial year of expected under the final rule. absence of data to estimate future implementation, the FDIC assumes that respondents, consistent with the the application for entities that do not 5. Reporting Compliance Costs changes in the rule relative to the NPR, meet a ‘‘designated exception,’’ will take As previously discussed, the final rule and with its Paperwork Reduction Act 10 hours to complete on average, and establishes some reporting obligations analysis of this rule, the FDIC assumes 0.25 hour per quarter each year 68 after for certain insured depository that 703 firms will submit notices for a that. The FDIC also recognizes there will institutions or nonbank third parties ‘‘designated exception’’ under the likely be outliers who spend more or that meet the ‘‘deposit broker’’ primary purpose exception based on less time on notices, applications, and definition by either placing (or placing less than 25 percent of customer reporting than the FDIC expects at this facilitating the placement of) customer assets under administration, in the time, therefore FDIC believes that the deposits at insured depository initial year of implementation. Further, compliance burden realized by affected institutions but meet the ‘‘primary the FDIC assumes that 176 firms will entities will likely vary from labor hours purpose’’ exception. Specifically, the submit notices for a ‘‘designated presented. Therefore, based on the rule provides that entities that wish to exception’’ under the primary purpose above assumptions and methodology, invoke two of the ‘‘designated exception based on placing less than 25 the FDIC estimates the final rule exceptions’’—the ‘‘25 percent’’ and percent of customer assets under imposes an annual reporting burden of ‘‘enabling transactions’’ business administration, on average each year, an 5,784 hours for the first year and 497.5 arrangements—will be required to ongoing basis. hours each year after that for all affected submit a notice to the FDIC. These According to Census data, there are entities. This equates to estimated entities will also be subject to either a 1,223 establishments within the compliance costs of $613,740 in the first quarterly reporting or annual industry in which deposit brokers are year and $51,589 each year after that for certification requirement. classified.67 Not all 1,223 all affected entities.69 The final rule also establishes an establishments engage in deposit application process under which any brokering, and some firms which engage Part II. Interest Rate Restrictions agent or nominee that seeks to avail in deposit brokering may be classified in A. Policy Objectives itself of the primary purpose exception, another industry. In the absence of data or an insured depository institution to estimate future respondents, The policy objective of Part II of this acting on behalf of an agent or nominee, consistent with the changes in the rule final rule is to ensure that deposit and does not meet one of the relative to the NPR, and with its interest rate caps appropriately reflect ‘‘designated exceptions,’’ could request Paperwork Reduction Act analysis of the prevailing deposit interest rate that the FDIC consider the agent or this rule, the FDIC assumes that 245 nominee as meeting the primary 68 This average number reflects that not all firms will submit notices in reliance on approved applications are expected to require purpose exception. Entities that meet the enabling transactions designated ongoing reporting. the primary purpose exception via an exception in the initial year of 69 For the applications relating to exceptions from approved application may also be implementation. Additionally, the FDIC the definition of ‘‘deposit broker,’’ the FDIC used subject to periodic reporting assumes that 245 firms submit the wage estimates from the Bureau of Labor Statistics (BLS) ‘‘National Industry Specific requirements under the final rule. applications for a primary purpose Occupational Employment and Wage Estimates: These reporting requirements will exception in the initial year of Securities, Commodity Contracts, and Other allow the FDIC to monitor the implementation. Finally, in the absence Financial Investments and Related Activities applicability of the primary purpose of data to estimate future respondents, Sector’’ (May 2018), while for the Application for exception. Waiver of Prohibition on Acceptance of Brokered the FDIC assumes that 61 will file a Deposits, the FDIC used the wage estimates from Finally, the FDIC may, with notice, notice in reliance upon the enabling the BLS ‘‘National Industry-Specific Occupational revoke a primary purpose exception of transactions designated exception, or a Employment and Wage Estimates: Depository Credit a third party that relies on a ‘‘designated designated exception identified in the Intermediation Sector’’ (May 2018). Other BLS data exception,’’ if the third party no longer used were the Employer Cost of Employee future that requires a notice, and an Compensation data (June 2019), and the Consumer meets the criteria for a designated additional 61 will submit an Price Index (June 2019). Hourly wage estimates at exception, the notice or subsequent application, on average each year, on an the 75th percentile wage were used, except when reporting is inaccurate, or the notice ongoing basis. the estimate was greater than $100, in which case filer fails to submit the required reports. In the initial year of implementation, $100 per hour was used, as the BLS does not report hourly wages in excess of $100. The 75th percentile For approved applications, the FDIC the FDIC assumes that the notice for the wage information reported by the BLS in the may, under certain circumstances and Specific Occupational Employment and Wage with adequate justification, require the 66 2019 FINRA Industry Snapshot, pg. 13, https:// Estimates does not include health benefits and entity to refile a notice, submit an www.finra.org/sites/default/files/2020%20 other non-monetary benefits. According to the June Industry%20Snapshot.pdf. 2019 Employer Cost of Employee Compensation application, reapply for approval, 67 Deposit brokers are classified according to the data, compensation rates for health and other impose additional conditions on the 2017 North American Industry Classification benefits are 33.8 percent of total compensation. approval, or withdraw a previously System as belonging to the ‘‘Miscellaneous Additionally, the wage has been adjusted for granted approval, with notice to the Financial Investment Activities’’ industry (NAICS inflation according to BLS data on the Consumer code 523999). See U.S. Census Bureau, 2017 County Price Index for Urban Consumers (CPI–U), so that entity. Business Patterns Data, available at https:// it is contemporaneous with the non-wage There were 3,517 Financial Industry www.census.gov/data/datasets/2017/econ/cbp/ compensation statistic. The inflation rate was 1.86 Regulatory Authority (‘‘FINRA’’) 2017-cbp.html. percent between May 2018 and June 2019.

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environment, while continuing to accept deposits from a ‘‘deposit broker.’’ rates significantly higher than prevailing ensure that less than well capitalized Thus, the institution cannot accept rates.’’ 77 institutions do not solicit or accept these deposits from itself. In this ‘‘Market.’’ In the FDIC’s regulations, deposits by offering interest rates that indirect manner, the statute prohibits as implemented through both the 1992 significantly exceed prevailing rates on institutions in this category from and 2009 rulemaking, the term ‘‘market’’ comparable deposit products. soliciting deposits by offering rates is ‘‘any readily defined geographical area in which the rates offered by any B. Background significantly higher than the prevailing rates in the institution’s ‘‘normal market one insured depository institution Under Section 29 of the FDI Act, well area.’’ soliciting deposits in that area may capitalized institutions are not subject affect the rates offered by other insured Undercapitalized institutions. In this to any interest rate restrictions. depository institutions in the same category, institutions may not solicit However, the statute imposes interest area.’’ 78 The FDIC determines an deposits by offering rates ‘‘that are rate restrictions on insured depository institution’s market area on a case-by- significantly higher than the prevailing institutions that are less than well case basis.79 capitalized, as defined in Section 38 of rates of interest on insured deposits (1) The ‘‘National Rate.’’ As part of the the FDI Act. The statutory restrictions in such institution’s normal market area; 1992 rulemaking, the ‘‘national rate’’ are described in detail below. or (2) in the market area in which such was defined as follows: ‘‘(1) 120 percent Brokered deposits accepted pursuant deposits would otherwise be of the current yield on similar maturity 73 to a waiver and certain reciprocal accepted.’’ U.S. Treasury obligations; or (2) In the deposits. Institutions that are less than C. Regulatory Approach case of any deposit at least half of which well capitalized may not pay a rate of is uninsured, 130 percent of such interest on brokered deposits accepted The FDIC has implemented the applicable yield.’’ In defining the pursuant to a waiver, or on reciprocal statutory interest rate restrictions ‘‘national rate’’ in this manner, the FDIC deposits excluded by Section 29 from through two rulemakings.74 While the understood that the spread between being considered brokered deposits, that statutory provisions noted above set Treasury securities and depository ‘‘significantly exceeds’’ the following: forth a basic framework based upon institution deposits can fluctuate ‘‘(1) The rate paid on deposits of similar capital categories, they do not provide substantially over time but relied upon maturity in such institution’s normal certain key details, such as definitions the fact that such a definition is market area for deposits accepted in the of the terms ‘‘significantly exceeds,’’ ‘‘objective and simple to administer.’’ 80 institution’s normal market area; or (2) ‘‘significantly higher,’’ ‘‘market,’’ and By using percentages (120 percent, or the national rate paid on deposits of ‘‘national rate.’’ As a result, the FDIC 130 percent for wholesale deposits, of comparable maturity, as established by defined these key terms via rulemaking the yield on U.S. Treasury obligations) the [FDIC], for deposits accepted outside in 1992. Both the ‘‘national rate’’ instead of a fixed number of basis 70 the institution’s normal market area.’’ calculation and the application of the points, the FDIC hoped to ‘‘allow for Adequately capitalized institutions. interest rate restrictions were updated in greater flexibility should the spread to Institutions that are adequately a 2009 rulemaking. Treasury securities widen in a rising capitalized may not engage in the interest rate environment.’’ solicitation of deposits by offering rates ‘‘Significantly Exceeds’’ or ‘‘Significantly Higher.’’ 75 Through both Additionally, at the time of the 1992 that ‘‘are significantly higher than the rulemaking, the FDIC did not have the 1992 and the 2009 rulemakings, the prevailing rates of interest on deposits readily available data on actual deposit FDIC has interpreted that a rate of offered by other insured depository rates paid and used Treasury rates as a interest ‘‘significantly exceeds’’ another institutions in such depository proxy. institution’s normal market area.’’ 71 For rate, or is ‘‘significantly higher’’ than Prior to the 2009 rulemaking, yields institutions in this category, the statute another rate, if the first rate exceeds the on Treasury securities plummeted restricts interest rates in an indirect second rate by more than 75 basis 76 precipitously, driven by global manner. Rather than simply setting forth points. In adopting this standard in economic uncertainties, which resulted an interest rate restriction for adequately 1992, and subsequently retaining it in in a ‘‘national rate’’ that was lower than capitalized institutions to accept 2009, the FDIC offered the following deposit rates offered by many brokered deposits, the statute defines explanation: ‘‘Based upon the FDIC’s institutions. As part of the 2009 the term ‘‘deposit broker’’ to include experience with the brokered deposit rulemaking, with access to data on ‘‘any insured depository institution that prohibitions to date, it is believed that offered rates available on a substantially is not well capitalized . . . which this number will allow insured real-time basis, the FDIC redefined the engages, directly or indirectly, in the depository institutions subject to the ‘‘national rate’’ as ‘‘a simple average of solicitation of deposits by offering rates interest rate ceilings . . . to compete for rates paid by all insured depository of interest which are significantly higher funds within markets, and yet constrain institutions and branches for which data than the prevailing rates of interest on their ability to attract funds by paying are available.’’ 81 deposits offered by other insured The ‘‘Prevailing Rate.’’ The FDIC has depository institutions in such 73 12 U.S.C. 1831f(h). recognized, as part of its regulation on depository institution’s normal market 74 57 FR 23933 (1992); 74 FR 26516 (2009). interest rate restrictions, that area.’’ 72 In other words, the depository 75 The FDIC has not viewed the slight verbal variations in these provisions as reflecting a institution itself is a ‘‘deposit broker’’ if 77 legislative intent that they have different meaning 57 FR 23933, 23939 (1992); 74 FR 26516, 26520 it solicits deposits by offering rates and so the agency has, through rulemaking, (2009). significantly higher than the prevailing construed the same meaning for these two phrases. 78 57 FR 23933 (1992); 74 FR 26516 (2009). rates in its own ‘‘normal market area.’’ 76 12 CFR 337.6(b)(2)(ii), (b)(3)(ii) and (b)(4). The 79 12 CFR 337.6(f). Without a waiver, the institution cannot FDIC first defined ‘‘significantly higher’’ as 50 basis 80 57 FR 23933, 23938 (June 5, 1992). points. 55 FR 39135 (1990). As part of the 1992 81 74 FR 26516 (2009). The 2009 rulemaking also rulemaking, commenters suggested that the FDIC recognized, based on the FDIC’s experience, that 70 12 U.S.C. 1831f(e). define ‘‘significantly higher’’ as 100 basis points. In some institutions still do compete for particular 71 12 U.S.C. 1831f(g)(3). response, the FDIC defined ‘‘significantly higher’’ as products within their local market areas, and 72 Id. 75 basis points. provided a safe harbor for those institutions.

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competition for deposit pricing has previous national rate cap (based on top rate payers. For this period, the become increasingly national in scope. U.S. Treasury securities) that had current regulation’s methodology for Therefore, through the 2009 rulemaking, become overly restrictive. Chart 1 below calculating the national rate, to which the FDIC presumes that the prevailing reflects the current national rate cap and 75 basis points is added to arrive at the rate in an institution’s market area is the the average of the top ten rates paid for national rate cap, resulted in a national FDIC-defined national rate.’’ 82 a 12-month CD between 2010 and the rate cap that allowed less than well D. Need for Further Rulemaking present.83 Chart 1 illustrates that capitalized institutions to easily between 2010 and approximately the compete with even the highest rates The current interest rate cap regulations became effective in 2010 second quarter of 2015, rates on paid on the 12-month CD during this and were adopted to modify the deposits were quite low, even for the timeframe.

However, from about July 2015 rate cap, although the timing of when unchanged from mid-2015 to through February 2020, the current such changes occurred varied from approximately February 2020. national rate methodology resulted in a product to product. Due to the COVID– Primarily, interest rates were relatively national rate for the 12-month CD that, 19 emergency and the resulting effect on low following the financial crisis that when 75 basis points were added, the economy beginning in March 2020, began in 2007. Towards the end of 2015, resulted in a national rate cap that deposit rates in general, including the however, some banks began to increase remained relatively unchanged. During national rate and the rates paid by the rates paid on deposits as the Federal this period, the FDIC observed that the top rate payers dropped, so that less Reserve increased its federal funds rate relatively unchanged national rate could than well capitalized institutions may targets. During this time, and up to the restrict less than well-capitalized banks again easily compete with even the present day, the largest banks have from competing for market-rate funding. highest rates paid on the 12-month CD been, on average, slower to raise their Market conditions caused similar under the current national rate cap. published interest rates on deposits. changes in the rates of other deposit There are several reasons that the This has held down the simple average products compared to the applicable national rate cap remained fairly of rates offered across all insured banks

82 74 FR 26516, 26519 (2009). 83 The average of the top ten rates paid for 12 show the general direction of the movement of the month CDs is meant to illustrate a competitive market for deposit rates. offering rate for wholesale insured deposits and

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and branches. Additionally, institutions, the current ‘‘national rate’’ definition, 3. Local Rate Cap including the largest banks, had been which is based on the simple average of Under the FDIC’s the current offering more deposit products with rates paid by all insured depository regulation, there is a presumption that special features, such as rewards institutions and branches, with a the prevailing rate or effective yield in checking, higher rates on odd-term definition based on a weighted average the relevant market is the national rate maturities, negotiated rates, and cash of rates paid by all insured depository unless the FDIC determines, in its sole bonuses, that are not included in the institutions on a given deposit product, discretion based on available evidence, calculation of the published national where the weights are institutions’ that the effective yield in that market rate. respective market share of domestic differs from the national rate. If a bank Because of these developments, the deposits. This change to the calculation believes that the posted national rates majority of the institutions subject to the of the ‘‘national rate’’ was intended to are lower than the actual prevailing interest rate caps sought determinations address comments received in response rates in the bank’s normal market from the FDIC to use the local rate for to the ANPR that expressed concern that area(s), then the bank may request a deposits obtained locally as the the current national rate definition high rate area determination from the prevailing rate during the period when resulted in a national rate cap that is too FDIC. In determining whether the bank the national rate cap remained relatively low because the largest banks with the is in a high rate area, the FDIC could use unchanged. The national rate cap, most branches have a disproportional segmented market rate information (for however, remained applicable to effect on the national rate, and that the example, evidence by State, county or deposits that these institutions obtained branch-based methodology minimized metropolitan statistical area).87 If the from outside their respective normal the significance of online-focused FDIC agrees that the bank was in a high market area, including through the banks, which have few or no branches rate area,88 the institution would be internet. but tend to pay the highest rates. permitted to pay as much as 75 basis Setting the national rate cap at too 2. National Rate Cap points above the local prevailing rate for low of a level could prohibit less than deposits on those products solicited in In the Interest Rate NPR, the FDIC well capitalized banks from competing its local market areas. For deposits proposed to replace the current national for deposits and create an unintentional received from outside its local market liquidity strain on those banks rate cap, i.e., the national rate plus 75 basis points, with a proposed definition (including through the internet), the competing in national markets. For institution would have to offer rates that example, a national rate cap that is too of ‘‘national rate cap’’ that is the higher of: (1) The rate offered at the 95th did not exceed the national rate cap. low could destabilize a less than well Also, the FDIC could allow evidence as capitalized bank that gathers deposits percentile of rates weighted by domestic deposit share; or (2) the national rate to the rates offered by credit unions but outside its local market area just as it is only if the insured depository working on improving its financial plus 75 basis points, with modifications to how the national rate is calculated, as institution competed directly with the condition. Preventing such institutions credit unions in the particular market. from being competitive for deposits, described below. The FDIC stated that it intended that In the Interest Rate NPR, the FDIC when they are most in need of proposed to establish a local market rate predictable liquidity, can create severe the proposed two-prong national rate cap be effective across economic and cap that is 90 percent of the highest funding problems. Additionally, a rate offered rate in the institution’s local cap that is too low may be inconsistent interest rate cycles. During periods of low interest rates such as during the market area for a specific deposit with the statutory requirement that an product. Specifically, the proposal insured depository institution is only 2008 to 2015 period and the current, pandemic environment since March would allow less than well capitalized prohibited from offering a rate that institutions to provide evidence that any ‘‘significantly exceeds’’ or is 2020, the second prong, i.e., the national rate plus 75 basis points, would likely bank or credit union with a physical ‘‘significantly higher’’ than the presence in its local market area offers prevailing rate. This could be the governing prong of the proposed national rate cap. During more normal a rate on a particular deposit product in unnecessarily harm the institution, excess of the national rate cap. If especially when liquidity planning is interest rate environments, such as between 1992 and 2008, and between sufficient evidence is provided, then the essential for safety and soundness. 2015 and early 2020, the other prong, less than well capitalized institution E. Advance Notice of Proposed the 95th percentile of rates, would likely would be allowed to offer an interest Rulemaking and Notice of Proposed be the national rate cap. The proposal rate that is 90 percent of the highest Rulemaking was intended to provide a more offered rate in the local market area. balanced and dynamic national rate cap The Interest Rate NPR would On September 4, 2019, the FDIC eliminate the current two-step process published in the Federal Register a that would ensure that less than well capitalized institutions have the where less than well capitalized notice of proposed rulemaking (‘‘Interest institutions request a high rate Rate NPR’’),84 that proposed to amend flexibility to access market-rate funding, the national rate, the national rate cap, yet prevent them from offering a rate that significantly exceeds the prevailing 87 12 CFR 337.6(f). the local market area, and the local 88 rate for a particular product, in The procedures for seeking such a market rate cap, as described below.85 determination are set forth in FIL–69–2009 (Dec. 4, 86 accordance with Section 29. 2009). As explained in the FIL, an insured 1. National Rate depository institution can request a high rate To address concerns raised in 86 In the proposal, the FDIC discussed other ways determination for its market area(s) by sending a it had considered to set the national rate cap, letter to the applicable FDIC regional office. After response to the ANPR about the current including setting at: The higher of the current receiving the request, the FDIC would make a calculation of the ‘‘national rate,’’ from interest rate cap and the one that preceded it from determination as to whether the bank’s market area which the current national rate cap is 1992 to 2009, and the average of rates paid by the is a high-rate area. If the FDIC agreed that the bank derived, the FDIC proposed to replace top payers. 84 FR 46470, 46476–46477. The FDIC was operating in a high-rate area, the bank would also solicited comment on whether there were need to calculate and retain evidence of the better options for setting a proxy for what it means prevailing rates for specific deposits in its local 84 85 FR 7453 (Feb. 10, 2020). to ‘‘significantly exceed’’ a prevailing market rate market area. The question and answer attachment 85 84 FR 46470 (Sept. 4, 2019). when rates converge. 84 FR 46470, 46492–46493. was revised in November 1, 2011.

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determination from the FDIC and, if national rate (and, ultimately, the unions. Another trade association approved, calculate the prevailing rate national rate cap) to be too low, making representing banks recommended that within local markets. Instead, a less it harder for banks, particularly the FDIC set the national rate cap using than well capitalized institution would community banks, to compete for or a formula that it submitted, and implicit need to notify its appropriate FDIC attract deposits. in that formula was the higher of the regional office that it intends to offer a A trade association recommended that pre-2009 Treasuries-based rate and the rate that is above the national rate cap credit union rates be included as part of current rate, with modifications. and provide evidence that an insured the national rate calculation because A trade association recommended that depository institution or credit union in credit unions compete on both a the FDIC adopt a national rate cap of the the local market area is offering a rate national and local scale with insured higher of the current rate cap or the in its local market area in excess of the depository institutions. Treasuries-based rate cap in place from 1992 to 2009. A State banking national rate cap for a comparable 2. Discussion of Public Comment on the commissioner recommended that the deposit product. As described above, National Rate Cap the institution would then be allowed to FDIC set the national rate cap at the offer 90 percent of the rate offered by Most commenters agreed that the higher of the following 4 measures: (1) the insured depository institution or current interest rate cap methodology The proposed national rate cap credit union in the institution’s local needed to be revised and no commenter methodology; (2) the 1992–2009 market area. The institution would be recommended that the current methodology, i.e., 120 percent or 130 expected to calculate the local rate cap methodology remain unchanged. percent of the comparable U.S. Treasury periodically, and, upon the FDIC’s Several commenters raised general plus 75 basis points; (3) the average of request, provide the documentation to concerns about data quality and the top 25 rates offered in the nation; the appropriate FDIC regional office and transparency, in particular with respect and (4) the highest rate offered by a to examination staff during subsequent to the 95th percentile. One commenter local institution for a particular deposit examinations. questioned the quality of the underlying product. For renewals of time deposits, data used to calculate the rate. One the State banking commissioner F. Discussion of Comments commenter wrote that the data that is recommended that a bank be permitted In response to the Interest Rate NPR, currently being collected and used by to pay the rate currently paid to the the FDIC received a total of 43 the FDIC to calculate the rate cap is not customer for the same or lesser amount comments. Three of the comments were always an accurate representation of and for the same or lesser term. from national associations representing actual rates that many banks are willing Commenters generally recommended stakeholders in the banking industry; to pay and are actively paying and that that the national rate cap be more three were from state-level associations while the 95th percentile would be an transparent by basing it on publicly representing stakeholders in the banking improvement over the current available market data such as Treasury industry in those states; one comment methodology, it still does not produce a and federal funds rates. was from another trade association; one rate cap high enough to exceed A banker recommended that the FDIC was from a state banking department, prevailing rates in some economic make a list of the highest rates offered one comment was from a law firm on cycles. Several argued that the national to consumers for comparable products, behalf of a bank, and 30 comments were rate is not robust enough and should be select a certain number of the highest from bankers or banks, including 12 based on publicly available, transparent rates, e.g., 25 and average those 25 similar emails from bankers. The details data. One commenter stated that it is highest rates. To accommodate the of these comments are discussed below. important to have a transparent and statutory language, the banker suggested market-based national rate. Another that the average be the national rate and 1. Discussion of Public Comment on the argued that the 95th percentile would National Rate the FDIC allow 110 percent of that not be effective because it is not an average as the level that does not Several commenters raised concerns accurate representation of actual rates significantly exceed the national rate. about the proposed methodology for that many banks are willing to pay and For nonmaturity deposits, one calculating the national rate. For actively paying, and that if the FDIC commenter suggested that the national example, a national trade association for used the 95th percentile it should add rate cap be based on the federal funds the banking industry and several 75 basis points to that rate. One rate, 1-month Treasuries rate, FHLB bankers raised concerns regarding the commenter stated that the 95th overnight funds rate, or rates offered by use of a weighted approach. Some percentile still gives large banks too listing services. Another banker commenters wrote that they believed much influence over the calculation of suggested using the 3-month Treasuries that the proposed methodology the rate. rate or the federal funds rate, plus 75 continued to give undue weight to the Several commenters recommended basis points. Still another commenter largest institutions with a traditional additional changes and requested that suggested that nonmaturity products branch based model. One commenter the proposed methodology be revised in should use either the pre-2009 indicated that it remained concerned the final rule. A trade association methodology or the rates on 1-year about the continued use of weighting, representing banks recommended that Treasuries. whether it be by branch, market share, the FDIC adopt a rate cap that is the or size because they believe that higher of the rate cap using the 3. Discussion of Public Comment on weighting tends to misrepresent actual methodology in place between 1992 and Local Rate Cap market share. Several commenters urged 2009 (the Treasuries-based rate cap), The FDIC received several comments the FDIC to include rates paid by credit and the rate cap using the methodology regarding the local rate cap proposal. unions and internet banks, stating that currently in place but modified so that One national trade association including those rates would make for a it is 100 basis points above the average representing banks, as well as a state more accurate national rate calculation. instead of 75 basis points and so that the trade association, recommended that the The commenters suggested that such average is calculated assigning each FDIC use 125 percent, instead of the rates are often higher and thus not bank the same weight, with the proposed 90 percent, of a competing including them would cause the additional change to include credit interest rate as the upper limit, which it

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claimed would allow a less than well because there is no guarantee the FDIC prong, the final rule substitutes a rate capitalized bank to offer competitive will not impose onerous rate restrictions that is 120 percent of the current yield rates on deposits while not going so far regardless of the amount of capital on similar maturity U.S. Treasury above normal market rates as to invested. obligations, plus 75 basis points. For exacerbate potential safety and nonmaturity deposits, the second prong G. The Final Rule soundness issues. Another national will be the federal funds rate of interest, association representing stakeholders in As described in further detail below, plus 75 basis points. This method is the banking industry recommended that the final rule amends the FDIC’s consistent with the alternative that was a less than well capitalized institution methodology for calculating the national set forth in the proposal. be permitted to offer at least up to 95 rate, the national rate cap, and the local Thus, the national rate cap being percent of the competing institution’s rate cap. The final rule also provides a adopted is the higher of: (1) The rate on a particular product in order to new simplified process for institutions national rate, as revised to be based on allow additional flexibility. that seek to offer a competitive rate weighting by deposits rather than A state-level banking association when the prevailing rate in an branches (and including credit unions), recommended that internet rates and institution’s local market area rate plus 75 basis points; or (2) 120 percent listing service rates be considered when exceeds the national rate cap. of the current yield on similar maturity deciding the local rates with which an 1. National Rate U.S. Treasury obligations, plus 75 basis institution competes. A banker stated points. The Treasury-based second that the proposal is better than the The FDIC is adopting the national rate prong also provides that, for current method of calculating local methodology generally as proposed, but nonmaturity deposits, the prong would rates, but suggested that the calculation revised to include the rates offered by be the federal funds rate, plus 75 basis include internet rates. credit unions. After considering the points. Commenters from more rural areas comments that indicated that credit The FDIC is replacing the proposed drew a distinction between funding unions compete with banks on a 95th percentile prong with a cap based operations in rural areas versus funding national scale, the FDIC is finalizing the on Treasury yields or federal funds, operations in more urban settings. One proposed national rate definition, because, and as noted in the Interest commenter wrote that banks in rural replacing the interest rate average Rate NPR, there are certain data areas may not have access to sufficient weighted by branches with an average limitations with the proposed local deposits and need to be able to where each institution’s interest rate is methodology. Specifically, the data attract deposits through other weighted by its share of deposits, with gathered from third party sources is mechanisms, such as online. One the addition of credit union rates. As based upon information provided commenter suggested that caps should described in the Interest Rate NPR, directly by institutions or made relate to a bank’s funding method, as calculating the national rate by market available via public sources. As such, there are often different rates offered at share, rather than branch count, more some rates being offered for certain branches, on-line at the same branch, accurately reflects the marketplace, and products are left unreported or and at a branchless bank. A single rate provides more emphasis on institutions unpublished and therefore may not be may result in a cap that is too high for with large or exclusive internet presence captured as part of the data set used to banks with many branches and too low as described by commenters. However, determine the proposed 95th percentile for branchless banks. the FDIC has not been able to find prong. sufficient reliable, robust data to include These limitations are more apparent 4. Discussion of Other Comments in its national rate calculation the today than when the FDIC adopted its One national trade association interest rates on deposit products with 2009 regulations that first pegged the commended the FDIC for revising its special features, such as rewards national rate calculation to a Risk Management Supervision Manual checking, off-tenor maturities, methodology based upon deposit rates. of Examination Policies to clarify that negotiated rates, cash bonuses, and non- This is because the 2009 methodology national rate caps apply only to cash rewards. was implemented during a recessionary institutions that are less than well period, and more recently, a significant capitalized. Despite this recent 2. National Rate Cap number of insured depository clarification to the Manual, several In this final rule, the FDIC is adopting institutions offer products with less bankers urged the FDIC to make clear to the proposed national rate cap with a standard features that often times are its examiners that the national rate cap modification in response to comments. either negotiated or not readily provided may not be used to evaluate well This formulation retains one prong of to third party sources. capitalized banks and should not be the national rate cap that was proposed, As part of this rulemaking process, used as a proxy to evaluate financial i.e., the national rate, weighted by and in response to commenter concerns products of well capitalized banks. deposits (and now including credit about the data limitations, the FDIC One banker reiterated a comment he unions as described above), plus 75 reviewed additional data sources to made in response to the ANPR that the basis points, which will likely be the determine whether these data sets could interest rate restrictions should not higher of the rates produced by the two provide a more reliable reflection of the apply to a bank that has capital ratios proposed prongs in low interest rate deposit rate market. While some data is that satisfy the well capitalized category environments such as the period available for a certain number of less but is deemed adequately capitalized between 2008 and 2015 and in the traditional deposit products, it is because it is subject to a consent current period since March 2020. difficult to accurately calculate an agreement that includes a capital However, the FDIC has replaced the annual percentage yield (APY) for maintenance provision. The commenter other proposed prong, the rate offered at certain products without more granular indicated that applying the interest rate the 95th percentile of rates weighted by data. For example, deposit products that restrictions to such an institution serves domestic deposit share, which would pay rates based upon certain balance as a strong disincentive to investors likely be the higher of the rates thresholds, or the number of injecting additional new capital into an produced by the two prongs during transactions made within a specific time institution experiencing difficulties more normal market conditions. For this period, would require the calculation of

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APYs based upon granular data (at the percentile by withdrawing or The charts attached in Appendix 2 of individual depositor level) that is introducing a product into the market or this notice reflect historical data for the unavailable, or to make general initiating a significant rate change. interest rates of insured depository assumptions that would likely result in While such fluctuations, caused by institutions that would have resulted less reliable APY calculations. factors other than data limitations, from the two prongs of the national rate Nonetheless, based on historical data would be reflective of changes in the cap being adopted. The charts also show samples the FDIC evaluated, it appears market, these changes could cause the average of top rates offered for that including the non-traditional volatility in the national rate cap. interest checking, savings, and money deposit products that have a calculable As another reason for using a market demand accounts, as well as CDs APY in the proposed 95th percentile Treasuries-based rate as one of the rate for terms of 1-month, 3-months, 6- methodology would generally result in cap prongs, the FDIC notes that it had months, one-year, two-years, three- a relatively small increase in applicable previously determined that the years, and five-years. rate caps. However, these data samples Treasuries-based rates plus 75 basis and analysis had limitations, and the points represented a reasonable 3. Local Market Rate Cap in the Final observations may not be robust across threshold above which rates Rule all banks and all markets; as a result, the ‘‘significantly exceeded’’ or were In the final rule, the FDIC is adopting FDIC plans to further explore these ‘‘significantly higher’’ than the national the proposed local market rate cap of 90 issues in the future rather than adopt rate. This determination was relatively percent of the highest offered rate in the this methodology as proposed. effective for the 16 years between 1992 institution’s local market geographic As noted above, the final rule retains and 2008 and was only changed in 2009 area. Specifically, a less than well the first proposed prong for the national to the current national rate cap formula capitalized institution may provide rate cap (national rate +75 basis points). because, in part, Treasury-based rates evidence that any bank or credit union The FDIC is retaining this prong, as fell significantly below deposit rate with a physical presence in its local proposed, notwithstanding the data averages in the low interest rate market area offers a rate on a particular limitations described above, because (1) environment associated with the deposit product in excess of the national based upon review of the historical financial crisis at that time. It is rate cap. The local market area may information, the first prong will be apparent that neither the current include the State, county or substantially similar to the branch-based methodology nor the Treasuries-based metropolitan statistical area, in which methodology that the FDIC has used for rate works in all interest rate the insured depository institution over a decade, (2) the 75 basis point environments, the methodology adopted accepts or solicits deposits. The less buffer ameliorates, though does not by the final rule is expected to be than well capitalized institution will be eliminate, some of the potential data durable under both high-rate or rising- 89 allowed to offer 90 percent of the concerns, and (3) including a second rate environments and low-rate or competing institution’s rate on the prong not based on deposit data ensures falling-rate environments. particular deposit product to customers Additionally, the FDIC will change the FDIC is not fully relying on deposit located within the less than well from publishing the national rates and data in calculating the national rate capitalized institution’s local market 90 national rate caps weekly, to publishing cap. The FDIC will continue to area. explore ways and additional data such data monthly to limit the need for sources to improve the national rate institutions to continually check the The final rule also eliminates the calculation and will continue to national rates. However, the FDIC may current two-step process where less consider pegging the national rate cap in certain circumstances publish the than well capitalized institutions entirely to deposit rates in the future. national rates and national rate caps request a high rate determination from Nevertheless, the FDIC acknowledges more or less frequently, such as during the FDIC and, if approved, calculate the that replacing the proposed 95th a time of unusual rate volatility. prevailing rate within local markets. percentile prong with a cap based on With respect to nonmaturity deposits, Instead, a less than well capitalized Treasury rates or federal funds rates there is no Treasury security of institution must notify its appropriate addresses concerns raised by comparable duration. In the Interest FDIC regional office that it intends to commenters about the transparency of Rate NPR, the FDIC asked if the offer a rate that is above the national the underlying data that the FDIC uses overnight federal funds rate should be rate cap and provide evidence that an to calculate the national rate, as well as used for nonmaturity deposits instead of insured depository institution or credit the perceived difficulty in replicating U.S. Treasury securities products. union with a physical presence in the the methodology. Further, a national Several commenters recommended that less than well capitalized institution’s rate cap applicable during normal the FDIC use the federal funds rate.91 normal market area is offering a rate on market conditions based on the 95th In the final rule, for nonmaturity a particular deposit product in its local percentile of rates is vulnerable to an products, in lieu of the Treasury-based market area in excess of the national institution, or a few institutions, with a calculation, the second prong of the rate cap. The less than well capitalized large deposit share affecting the 95th national rate cap is the federal funds institution would then be allowed to rate plus 75 basis points. The FDIC offer 90 percent of the rate offered by 89 As shown in the appendices, for the period of notes that, historically, the rate for the the competing institution in the low interest rates during 2010 to 2015, and from three-month Treasury security has institution’s local market area to March 2020 to the present, the 75 basis points tracked closely the federal funds rate. customers physically located within the added to the national rate did not restrict less than The FDIC has selected the federal funds institution’s local market area. The well capitalized institutions from competing for market-rate deposits when U.S. Treasury yields rate as the reference point for institution would be expected to were near zero. nonmaturity deposits under the second calculate the local rate cap monthly, 90 As shown in the appendices, for the periods of prong because, as an overnight deposit, maintain records of the rate calculations 1992 and 2008 and 2015 to early 2020, during Federal funds are conceptually closer to for at least the two most recent periods of more normal interest rate environments, the national rate cap based on Treasuries is more nonmaturity deposits. examination cycles and, upon the reactive to increases in deposit rates than the first FDIC’s request, provide the prong. 91 84 FR 46470, 46480 and 46492. documentation to the appropriate FDIC

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regional office and to examination staff capitalized institution ‘‘significantly with a range of 25 basis points between during any subsequent examinations. exceeds the prevailing rate in its normal 2012 through 2017. The FDIC is declining to adopt market area’’ if it offers a rate that is The FDIC did not choose this recommendations by commenters that above the average of the top rates alternative because, in the FDIC’s view, the local rate cap be higher than 90 offered in the country. This approach the one-bank, one vote approach would percent of the highest local rate. Given would be simple to administer and the result in a national rate that would not the changes being made to the national FDIC would be able to provide real-time be as reflective of market rates currently rate cap described above, the FDIC rate caps because it would no longer being offered as weighting by market expects the need for banks to resort to need to maintain and review the share. The FDIC believes that the local rate cap to be less frequent, extensive data it receives from third institutions with more deposits have a and, in such cases, 90 percent of the party data providers to calculate greater impact on competition and the highest local rate will provide a averages. market rates. meaningful cap while allowing the The FDIC decided not to choose this institution to compete for funds in its Federal Home Loan Bank Borrowing approach due to the same data Rate local market. The FDIC is also not limitations as the proposed 95th revising the proposed rule to include percentile prong, as described in Part II. Many commenters suggested that the internet rates, because the FDIC believes Additionally, the subset of banks paying FDIC amend the current national rate that it would be inconsistent with the the highest rate may have a small calculation and use the Federal Home concept of a ‘‘local’’ rate to include market share and have little to no Loan Bank (FLHB) borrowing rate for institutions that do not have a physical influence over competitive rates paid in each maturity. The FDIC chose not to location in the local market and internet the market. Further, this same small propose the FHLB borrowing rate for rates, which are offered nationally, are subset of banks could be significant several reasons. The FHLB borrowing reflected in the national rate. outliers from the rates offered by the rate is not based upon rates offered by 93 market. institutions, but is instead based upon 4. Off-Tenor Maturity Products the cost of funds for FHLB member If an institution seeks to offer a Incorporate Specials and Promotions institutions and requires that FHLBs product with an off-tenor maturity for Into the Current National Rate obtain and maintain collateral from which the FDIC does not publish the Calculation their members to secure the advance. national rate cap or that is not offered Several commenters suggested that Collateral requirements and borrowing by another institution within its local the FDIC change its methodology in interest rates may also vary based on an market area, then the institution will be calculating the current national rate and insured depository institution’s required to use the rate offered on the include additional inputs for the financial condition. Moreover, FHLB next lower on-tenor maturity for that published rates, such as special advances, unlike deposit products, are product when determining its negotiated rates or other monetary not insured and not guaranteed by the applicable national or local rate cap, bonus offers. As discussed in Part II, the U.S. government. In addition, there are respectively. For example, an institution FDIC has not been able to find sufficient 11 different FHLB districts, all that seeking to offer a 26-month certificate of reliable, robust data to include in its establish their own rates that may vary deposit, and no other local institution is national rate calculation the interest between districts. For these reasons, the offering a 26-month certificate of rates on deposit products with special FDIC does not believe that the FHLB deposit, must use the rate offered for a features, such as rewards checking, off- borrowing rate would be a reliable 24-month certificate of deposit to tenor maturities, negotiated rates, cash indicator of rates offered on deposits by determine the institution’s applicable bonuses, and non-cash rewards. insured depository institutions. national or local rate cap. However, as noted, the FDIC will On-tenor maturities are defined to I. Expected Effects continue to explore ways and additional include the following term periods: 1- The interest rate restrictions apply to data sources to improve the national month, 3-months, 6-months, 12-months, an insured depository institution that is rate calculation in the future. 24-months, 36-months, 48-months, and less than well capitalized under PCA’s 60-months. All other term periods are One Vote per Institution capital regime. An institution may be considered off-tenor maturities. There is less than well capitalized either Commenters also recommended that no off-tenor maturity for nonmaturity because: (1) Its capital ratios fall below published rates be limited to the highest products such as interest checking those set by the federal banking agencies rate offered by each depository accounts, savings accounts, or money for an institution to be deemed well institution rather than incorporating market deposit account. capitalized; or (2) it otherwise meets the rates paid at all branches. According to capital requirements for the well H. Alternatives commenters, this would prevent a capitalized category, but is subject to a skewing effect on the national rate by Below are alternatives, other than written agreement, order, capital the largest institutions with the most those described above, that were directive, or prompt corrective action branches. In considering this considered as part of this final directive issued by its primary regulator alternative, the FDIC analyzed the rulemaking. that requires the institution to meet and impact of this change by comparing the maintain a specific capital level for any Average of the Top-Payers yield curves for the 12-month CD, the capital measure.94 Some commenters suggested that the current national rate cap (using all branches) and the national rate cap FDIC use an average of the top rates 93 Section 29 of the FDI Act restricts less than paid as the national rate cap. As an using the highest rate offered by each well capitalized institutions from offering a rate of example, the FDIC could set the IDI (in other words, each institutions interest that is significantly higher than the national rate cap based upon the average receives ‘‘one vote’’).92 The differences prevailing rates of interest on deposits offered by other insured depository institutions. 12 U.S.C. of the top-25 rates offered (by product in rates range from 15 to 52 basis points, 1831f(g)(3). type). Under this approach, the FDIC 94 FDIC—12 CFR 324.403(b)(1)(v); Board of would interpret that a less than well 92 84 FR 46470, 46481 (Sept. 4, 2019). Governors of the Federal Reserve System—12 CFR

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As noted above, as of June 30, 2020, policies, procedures and internal In recent years, there has been some 10 FDIC-insured institutions had capital systems in order to achieve compliance confusion regarding the FDIC’s ratios that put them in a PCA category with the final rule. application of section 29 to nonmaturity lower than well capitalized.95 The FDIC deposits. The FDIC is adopting an III. Treatment of Nonmaturity Deposits reviewed the deposit interest rates interpretation in a clear, transparent for Purposes of the Brokered Deposits offered for 11 products during the way, through notice and comment month of September 2020 by nine of and Interest Rate Restrictions rulemaking, to address such confusion. these institutions for which data were A. Background B. Proposed Rulemakings available. None of the nine less than Section 29 provides that an ‘‘insured well capitalized institutions offered Accordingly, through this rulemaking depository institution that is not well interest rates above the current or the process, the FDIC considered capitalized may not accept funds final rule’s national rate caps for any approaches for when nonmaturity obtained, directly or indirectly, by or product reviewed.96 deposits held by less than well The definition of local and national through any deposit broker for deposit capitalized institutions are subject to the rate cap established by the final rule is into 1 or more deposit accounts’’ interest rate and brokered deposits 97 likely to benefit FDIC-insured (emphasis added). restrictions. institutions. The FDIC believes that the Section 29 also contains two interest In the Interest Rate NPR, the FDIC definition of national rate cap adopted rate restrictions, one based on when indicated that it was considering an by the final rule is more sensitive to a funds are accepted by an institution, the interpretation under which nonmaturity range of interest rate environments. The other on when an institution solicits deposits would be viewed as ‘‘accepted’’ final rule establishes a more transparent deposits. One restriction provides that and ‘‘solicited’’ for purposes of the methodology for calculating the national an adequately capitalized institution interest rate restrictions at the time any rate cap which should benefit FDIC- accepting brokered deposits pursuant to new nonmaturity funds are placed at an insured institutions by facilitating ease a waiver granted under Section 29(c) of institution. of compliance and simplifying their the FDI Act or reciprocal deposits may Under the proposed interpretation, liquidity planning. not pay a rate of interest that, at the time balances in an existing money market The greater sensitivity of the national the funds are accepted, significantly demand account or other savings rate cap in this final rule to prevailing exceeds the prevailing rate.98 The other account, as well as transaction accounts, interest rates would likely reduce the interest rate restriction prohibits a less at the time an institution fell below well potential for severe liquidity problems than well capitalized institution from capitalized would not be subject to the or liquidity failures at viable banks to soliciting any deposits by offering a rate interest rate restrictions unless or until arise solely as a result of the operation of interest that is significantly higher new funds were deposited into those of the cap. The FDIC believes this aspect than the prevailing rate.99 accounts. If funds were deposited to of the rule is important, although For CDs and other maturity deposits, such an account after the institution difficult to quantify given uncertainties the timing of when funds for such became less than well capitalized, the about both the future interest rate deposits are accepted is straightforward, entire balance of the account would be environment and the future condition of and Section 29 directs that such funds subject to the interest rate restrictions. banks. On the other hand, to the extent are accepted when the maturity deposit Interest rate restrictions would apply to rate caps are less restrictive, the leeway is renewed or rolled over.100 For any new nonmaturity deposit accounts for some less than well capitalized deposits credited to a nonmaturity opened after the institution fell below institution to continue to fund account, however, Section 29 does not well capitalized. imprudent operations could increase. In provide express direction or guidance In the Brokered Deposits NPR, the this regard, the FDIC believes the final on when such a deposit is accepted or FDIC considered a similar approach for rule continues to comport with the solicited. Applying these concepts of brokered deposits as it did for interest statutory purpose of preventing less solicitation and acceptance to rate restrictions. For brokered than well capitalized institutions from nonmaturity deposits is more relevant nonmaturity deposits, the FDIC soliciting deposits at interest rates that today than at the time that the law was considered an interpretation under significantly exceed prevailing deposit enacted, in 1989. At that time, brokered which nonmaturity brokered deposits interest rates. deposits were almost exclusively are viewed as ‘‘accepted’’ for the The final rule could benefit depositors maturity deposits. However, since 1989, brokered deposits restrictions at the by enabling them to earn higher rates of nonmaturity brokered deposits have time any new nonmaturity funds are return on their deposits. It is difficult to become more commonplace. placed at an institution by or through a estimate this expected effect because the deposit broker. effect would depend on the future 97 12 U.S.C. 1831f(a). Under this proposed interpretation, economic and financial conditions, and 98 12 U.S.C. 1831f(c). brokered balances in a money market the rates of return of competing 99 12 U.S.C. 1831f(g)(3) and (h). The restriction in demand account or other savings products, among other things. section 1831f(g)(3) operates to deem any less than account, as well as transaction accounts, well capitalized institution a deposit broker and at the time an institution falls below Finally, the final rule could pose such deposits brokered deposits, if the institution some modest regulatory costs for FDIC- solicits deposits by offering a rate of interest well capitalized, would not be subject to insured institutions associated with significantly higher than the prevailing rate. As a the brokered deposits restrictions. making the necessary changes to deposit broker, such an institution may only accept However, if brokered funds were such deposits if it is adequately capitalized and has deposited into such an account after the received a waiver under section 1831f(c). If below 208.43(b)(1)(v); Office of the Comptroller of the adequately capitalized, pursuant to section institution became less than well Currency—12 CFR 6.4(c)(1)(v). 1831f(g)(3), the institution would be prohibited capitalized, the entire balance of the 95 The 10 institutions do not include any from accepting such funds because a deposit broker account would be subject to the quantitatively well capitalized institutions that may may not accept brokered deposits and cannot not brokered deposits restrictions. If, have been administratively classified as less than obtain a waiver to do so. Section 1831(h) results in well capitalized. the same prohibition for undercapitalized however, the same customer deposited 96 Some institutions offered fewer than 11 institutions. brokered funds into a new account and products. 100 12 U.S.C. 1831f(b). the balance in that account was subject

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to the brokered deposits restrictions, the In adopting the interpretation described accepted whenever a new account is balance in the initial account would below, the FDIC is relying on the plain opened, or when funds are renewed or continue to not be subject to the meaning of the terms ‘‘solicit’’ and rolled over. brokered deposits restrictions so long as ‘‘accept’’ in a way that it is intended to The treatment of nonmaturity no additional funds were accepted. The be operationally workable for deposits is less straightforward. Under restrictions would also generally apply institutions and the FDIC. The FDIC this final rule, the FDIC is adopting an to any new nonmaturity brokered appreciates the operational difficulties interpretation for when a nonmaturity deposit accounts opened after the described by commenters that brokered deposit is considered accepted institution falls to below well institutions may have faced under the and therefore subject to the brokered capitalized. proposed interpretation, and has tried to deposits restrictions. Generally, the address such difficulties in the final rule C. Comments FDIC finds that funds are accepted while remaining within the parameters whenever (1) a depositor adds funds to The FDIC did not receive comments of the statutory text. a newly opened nonmaturity account in response to the proposed (or, similarly, when funds for a new interpretation provided in the Brokered 1. Solicitation of Funds by Offering Rates of Interest underlying depositor are credited to an Deposits NPR. However, the FDIC omnibus account in the case of an agent received a number of comments in Section 29 prohibits a less than well or nominee) or (2) for existing response to proposed interpretation capitalized institution from soliciting nonmaturity accounts, when the provided in the Interest Rate NPR, deposits by offering a rate of interest aggregate amount of nonmaturity funds which are summarized below. that is significantly higher than the accepted by or through a particular Interest Rate NPR. A national prevailing rate. Generally, under the deposit broker increases. More association that represents banks urged interpretation adopted by this final rule, specifically, the FDIC is interpreting the FDIC not to finalize its proposed an institution has solicited a deposit that for nonmaturity brokered deposits interpretation regarding nonmaturity when a new account is opened or when opened prior to an institution’s PCA deposits. The association wrote that the institution increases the rate of status falling below well capitalized, such an interpretation would be interest on an existing account. If a funds that were already credited to the operationally unworkable and would depositor adds funds to, or withdraws nonmaturity accounts at that time, by a require banks to maintain parallel funds from, an existing nonmaturity particular deposit broker, would not be products and systems to be able to track account, or leaves funds in an existing treated as being accepted. Nonmaturity accounts and multiple rates in the event nonmaturity account, no solicitation by brokered deposits would be considered the bank becomes less than well the institution has occurred. accepted in instances when, after an capitalized. The association also noted More specifically, for a nonmaturity institution becomes less than well that forcing a customer’s rate down, account opened after the institution has capitalized: should he or she deposit an additional fallen below well capitalized, under the Æ a nonmaturity brokered account is amount in the account would hurt final rule, an institution has solicited opened; consumers and likely cause a liquidity the deposit when the account is opened. Æ stress as customers move their balances For a nonmaturity account opened prior the amount of nonmaturity elsewhere. Instead, the association to an institution’s PCA status falling brokered deposits, by or through a recommended that once an institution below well capitalized, funds already particular deposit broker, increases falls below well capitalized, the FDIC credited to the account at that time have above the balance of nonmaturity should exempt or grandfather all not been solicited by the institution. In brokered deposits existing at the bank, existing deposit accounts from the rate addition, an institution will not be with respect to that particular deposit restrictions, restricting only new considered to have solicited deposits broker, at the time of downgrade to less than well capitalized; or deposits to new accounts opened with when new funds are added to a Æ the bank. Similarly, another commenter nonmaturity account that was opened for agent or nominee accounts, new suggested that existing nonmaturity before the institution fell below well funds of a new beneficial owner are accounts should be exempt from rate capitalized, unless it has changed the added to the account. caps, even when new funds are added. interest rate on the account. Under this interpretation, if an A stakeholder in the banking industry For a nonmaturity account held by a adequately capitalized bank, for pointed out that some banks can and do party as agent or nominee of one or example, retained $10 million in pay interest at different rates on more persons, funds are solicited each nonmaturity brokered deposits from a different parts of a depositor’s balance, time the funds of a new beneficial particular deposit broker prior to the so called ‘‘tiered interest.’’ The owner are added to, for example, the PCA downgrade, then it can continue to commenter indicated that there is no omnibus account. As a result, a less receive funds in and out of the apparent reason why a bank could not than well capitalized institution is nonmaturity brokered accounts tier interest in a way that would apply restricted from soliciting funds of a new maintained by that deposit broker, an unrestricted rate to the part of the beneficial owner at a rate that exceeds without seeking a waiver, as long as: balance that consists of deposits its applicable rate caps. The total amount of nonmaturity received before the bank became not brokered deposits from that deposit well capitalized and apply a restricted 2. Acceptance of Brokered Deposits broker does not increase above $10 rate only to new deposits in the account. Section 29 prohibits a less than well million, a new nonmaturity account is The commenter indicated that the capitalized institution from accepting not opened, or (for agent or nominee restricted interest rate could be applied funds obtained, directly or indirectly, by accounts) new funds of a new beneficial on a last-in, first-out basis. or through any deposit broker for owner are not added to the account. In deposit into one or more deposit order for the aggregate amount of D. Final Rule accounts. nonmaturity funds from that particular In the final rule, the FDIC is adopting As noted above, for deposits that have deposit broker to increase above $10 a new interpretation for the solicitation a maturity, application of section 29 is million, or in order for a new depositor and acceptance of nonmaturity deposits. straightforward. Funds have been to place funds into a nonmaturity

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account, the institution would need a the deposit broker after the institution interest rate above the applicable rate waiver from the FDIC. fell below well capitalized. cap; • the bank may continue to pay an 3. Acceptance of Brokered Deposits More specifically, for a nonmaturity Subject to a Waiver Into a Nonmaturity account opened prior to an institution’s interest rate above the applicable rate Account PCA status falling below well cap on a nonmaturity account opened capitalized, with respect to a particular prior to the bank falling below well As noted above, for the purposes of deposit broker, brokered funds that were capitalized, but may not increase the Section 29’s interest rate restrictions, in already credited to the nonmaturity rate, and a depositor may add funds to addition to the restrictions on soliciting account at that time would not be and withdraw funds from such account; deposits by offering a rate of interest treated as being accepted for purposes of • without a waiver, a bank may not that is significantly higher than the the interest rate restrictions. Funds open a new nonmaturity account by or prevailing rate, an adequately added to the account after the through a deposit broker, nor may funds capitalized institution is also subject to institution falls below well capitalized, on behalf of a new underlying depositor interest rate restrictions when it accepts with respect to a particular deposit be added to an existing omnibus nonmaturity brokered deposits subject broker, would be subject to the interest account in the case of an account of an to a waiver. agent or nominee that is a deposit As a result, nonmaturity brokered rate restriction to the extent they exceeded the balance of nonmaturity broker; deposits that are accepted pursuant to a • without a waiver, the aggregate waiver, as described above, would be brokered deposits existing at the bank, amount of nonmaturity funds that the subject to the applicable rate cap. To with respect to that particular deposit bank receives by or through a deposit take the example above, the institution, broker, at the time of downgrade to less broker may not exceed the aggregate upon falling below well capitalized than well capitalized, if the institution amount of nonmaturity funds retained status, would not be restricted by has received a waiver to accept brokered from that deposit broker at the time the section 29 from paying any rate of deposits. In addition, with respect to a bank fell below well capitalized, interest on nonmaturity funds from that particular deposit broker, for a (meaning that existing depositors may particular deposit broker to existing nonmaturity account opened after an add funds to or withdraw funds from depositors, so long as the aggregate institution has fallen below well their nonmaturity accounts so long as funds remained below $10 million. The capitalized, the brokered funds will be the aggregate amount does not exceed institution could receive a waiver to treated as accepted when the the aggregate amount at the time the allow the aggregate funds from that nonmaturity account is opened. For a bank fell below well capitalized); deposit broker for that group of existing nonmaturity account held by a party as • with a waiver, the aggregate depositors to exceed $10 million; agent or nominee of one or more nonmaturity funds received by or however, the institution would not be persons, with respect to a particular through a deposit broker may increase permitted to pay a rate of interest in deposit broker, funds are accepted each above the aggregate amount at the time excess of the rate cap on more than $10 time funds of a new depositor are added the bank fell below well capitalized, million in funds. In the event the to the omnibus account. subject to the terms of the waiver; and institution receives such a waiver, the 4. Summary of Treatment of • with or without a waiver, the rule does not distinguish which funds Nonmaturity Deposits amount of nonmaturity funds from a have been accepted pursuant to the particular deposit broker on which the waiver, due to the fungibility of funds To summarize, if a bank falls below bank may pay a rate of interest in excess and the operational challenges in well capitalized, under this final rule: of the applicable rate cap may not imposing such a regime, and instead • The bank may not open a new exceed the aggregate amount of restricts the total amount of funds upon nonmaturity account that pays an nonmaturity funds retained from that which the institution can pay a rate in interest rate above the applicable rate deposit broker at the time the bank fell excess of the applicable rate cap. The cap, nor may it add funds on behalf of below well capitalized. rate cap restrictions would also apply to a new depositor to an existing any new accounts opened by or through nonmaturity account that pays an Appendix 1

PUBLICLY-AVAILABLE ADVISORY OPINIONS

AO No. AO title

02–2 ...... 02–2 Applicability of FDIC Regulations Regarding Brokered Deposits to Credit Unions Servicers That Purchase Certificates of Deposit from FDIC Insured Banks. 02–4 ...... 02–4 Opinion Regarding Whether ‘‘Listing Services’’ Would Be Considered Deposit Brokers. 04–03 ...... 04–03 Questions Concerning Capital Market CD Program. 04–04 ...... 04–04 Question Regarding FDIC’s Criteria for Determining When a ‘‘Listing Service’’ is a Deposit Broker. 04–05 ...... 04–05 Questions Regarding Deposit Insurance Coverage of the interest and CD When Interest is Based on the Consumer Price Index. 05–02 ...... 05–02 Are Funds Held in ‘‘Cash Management Accounts’’ Viewed as Brokered Deposits by the FDIC? 00–6 ...... 00–6 Whether Brokered CDs Purchased at Different Institutions Will be Separately Insured After a Merger of Those Institu- tions. 13–01 ...... 13–01 Question Concerning a Deposit Program. 15–01 ...... 15–01 Question regarding whether Financial Firms that Refer Clients to a Bank Qualify as Deposit Brokers. 15–02 ...... 15–02 Question regarding whether a Company that Designs Deposit Products is Considered a Deposit Broker–Part I. 15–03 ...... 15–03 Question regarding whether a Company that Designs Deposit Products is Considered a Deposit Broker–Part II. 15–04 ...... 15–04 Question regarding whether business professionals qualify as deposit brokers when referring clients to a bank. 16–01 ...... 16–01 Question regarding whether certain Deposits held for Clearing Purposes at an Affiliated Bank are Brokered Deposits. 17–01 ...... 17–01 Question regarding whether deposits placed through a Bank Program to allocate Charitable Donations to local Com- munity Organizations would be Considered Brokered Deposits.

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PUBLICLY-AVAILABLE ADVISORY OPINIONS—Continued

AO No. AO title

17–02 ...... 17–02 Question regarding whether certain Deposits placed through a Bank’s relationship with certain ‘‘Middle Market Com- panies’’ are considered Brokered Deposits. 88–7 ...... 88–7 Insurance Coverage of CDs Invested Through Deposit Broker. 89–51 ...... 89–51 Brokered Deposits Prohibition of Section 29 of the FDI Act Under FIRREA. 89–55 ...... 89–55 Does Acceptance of Brokered Deposits in Violation of Section 29 of the FDI Act Affect the Insurance of the Deposits So Received. 90–11 ...... Brokered Deposits: Master CD’s Purchased From Financial Institutions and Held by a Custodian Bank for the Benefit of the Purchasers. 90–2 ...... Deposit Insurance for Brokered Deposits. 90–24 ...... 90–24 Deposit Broker Engaged in the Business of Placing Deposits, or Facilitating the Placement of Deposits. 90–40 ...... Domestic Brokered Deposits of Foreign Bank Customer Funds: Recordkeeping Requirements. 92–50 ...... 92–50 Criteria for Determining Whether a Listing Is a ‘‘Deposit Broker’’ for Purposes of 12 U.S.C. § 1831f and 12 C.F.R. § 337.6. 92–51 ...... Extent to Which Trust Department of Bank Is Subject to Registration Requirements Imposed by New Brokered Deposit Prohi- bitions. 92–52 ...... Company and Its Employees Offering Investment Advisory Services and Purchasing CDs in Clients’ Names Are Deposit Bro- kers Subject to Registration Requirements of New Brokered Deposit Prohibitions. 92–53 ...... 92–53 Company Which Never Has Actual Possession of Investor’s Principal But Facilitates Placement of Deposits Is a De- posit Broker. 92–54 ...... 92–54 Company Which Merely Collects Information on Availability and Terms of Deposit Accounts and Publishes Such Data Is not a Deposit Broker. 92–56 ...... 92–56 Bank Employee Who Sells Commercial Checking Accounts and Is Paid Solely by Commission Must Register as a Deposit Broker. 92–60 ...... 92–60 Where Company and Its Clients Are Deposit Brokers, Company May File Master Notice Registering as Deposit Broker on Behalf of Clients. 92–66 ...... 92–66 Investment Advisor/Fund Administrator for Governmental Authorities Is Deposit Broker with Respect to Optional Cer- tificate of Deposit Placement Program It Offers. 92–68 ...... 92–68 Bank Acts as Deposit Broker When It Places Portion of Deposits Exceeding Insurance Limit with Affiliated Depository Institutions. 92–69 ...... 92–69 Renewal or Rollover of Deposit Is Prohibited by 12 U.S.C. § 1831f(a) only if Deposit Broker Continues to be Involved in Transaction; Brokered Deposits Accepted at Rates Significantly Higher than Prevailing Rate but Renewed for Less Does not Constitute Prohibited Renewal. 92–71 ...... 92–71 Bank Acts as Deposit Broker When, at Request of Customer, It Purchases CDs at Other Depository Institutions and Charges Fee for Such Service. 92–73 ...... 92–73 Mere Knowledge on Part of Insured Depository Institution That It Is Accepting Funds from Broker Is Sufficient to Sub- ject Institution to Brokered Deposit Restrictions Based on Its Capital Category. 92–75 ...... 92–75 Brokered Deposits: Employee Compensation May Not Be Adjusted After the Fact to Ensure That Compensation is Primarily Salary. 92–77 ...... 92–77 Investment Advisor/Broker-Dealer which Establishes System for Marketing Deposits and Receives Consideration Through Receipt of Deposits or Fees by Bank which it Partially Owns Must Register as Deposit Broker. 92–78 ...... 92–78 FHA Trustees Servicing FHA-Related Mortgage Portfolios Are Not Subject to Brokered Deposit Registration Require- ments. 92–79 ...... 92–79 Associations With Which Insured Institution Has Entered Into Marketing Agreements are Subject to Brokered Deposit Registration Requirements. 92–84 ...... 92–84 Company that Assist and Advises Mortgage Loan Servicer in Placing Funds Must Register as Deposit Broker. 92–86 ...... 92–86 Company That Assists Municipalities, Private Investors and Corporations in Locating Depository Institutions Actively Seeking Large Deposits but That Does not Accept Direct Fee from Institution Must Register as a Deposit Broker. 92–87 ...... 92–87 Agreement Entered into Between Trust Department and Customer for Primary Purpose of Placing Funds With In- sured Depository Institutions Requires Bank to Register as Deposit Broker. 92–88 ...... 92–88 Bankers’ Bank Acts as Deposit Broker When It Places Deposits for Its Stockholder Banks and Other Depository Insti- tutions. 92–91 ...... 92–91 Administrator of State School Cash Management Program Which Places CDs Must Register as Deposit Broker. 92–92 ...... 92–92 Bank Acts as Deposit Broker When It Places Excess Funds for Municipality Acting as Public Guardian/Administrator and for Other Customers. 93–3 ...... 93–3 Transaction in Which an Entity Finds Insured Depository Institutions for Trust Department Investments for a Fee or Commission Is Subject to Brokered Deposit Recordkeeping Requirements. 93–4 ...... 93–4 Deposits Used to Secure Loans to Foreign Customers Are Subject to Brokered Deposit Interest Rate Restrictions. 93–5 ...... 93–5 An Adequately Capitalized Depository Institution Without a Brokered Deposit Waiver May Not Offer Interest Rates Sig- nificantly Higher Than Prevailing Interest Rate Offered by Other Insured Depository Institutions With Same Type of Charter. 93–6 ...... 93–6 Brokered Deposits: Insured Depository Institutions Must Compare Their Interest Rates to Other Insured Depository In- stitutions With Same Type of Charter. 93–13 ...... 93–13 Funds Invested in Federally Insured Minority- or Women-Owned Depository Institutions by Fannie Mae Pursuant to an Irrevocable Trust Are Not Considered Brokered Deposits. 93–14 ...... 93–14 Bank Acts as Deposit Broker When It Occasionally Invests in CDs With Other Insured Depository Institutions on Be- half of Its Customers. 93–16 ...... 93–16 Well-Capitalized Institution That Solely Offers High-Rate Deposits Need Not Notify FDIC of Its Deposit Broker Status. 93–18 ...... 93–18 Clarification of Brokered Deposit Interest Restrictions Imposed by 12 U.S.C. 1831(f). 93–19 ...... 93–19 Circumstances Under Which an Adequately Capitalized Institution Operating Under Brokered Deposit Waiver May Use National Rate Instead of Normal Market Rate. 93–21 ...... 93–21 Legal Requirements Governing Advertisement of Deposits by Deposit Brokers. 93–30 ...... 93–30 Affinity Groups Are Not Deposit Brokers for Purposes of Sections 29 and 29A of the FDI Act and 12 CFR § 337.6(a).

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PUBLICLY-AVAILABLE ADVISORY OPINIONS—Continued

AO No. AO title

93–31 ...... 93–31 Whether Well-Capitalized Institution Offering Variable-Rate, College Cost-Linked CD and Agents Who Place CD Are Deposit Brokers. 93–32 ...... 93–32 Clarification of Brokered Deposit Interest Rate Restrictions. 93–34 ...... 93–34 Whether Corporate Sponsor Participating in Bank Tie-In Promotion Is a Deposit Broker. 93–40 ...... 93–40 Clarification of Brokered Deposit Interest Rate Restrictions. 93–44 ...... 93–44 Brokered Deposits: Further Guidance for Listing Services. 93–46 ...... 93–46 Brokered Deposits: Clarification of ‘‘Deposit Broker’’ Definition and Interest Rate Restrictions. 93–47 ...... 93–47 Whether Independent Trust Company Which Conducts Activities on Behalf of Affiliated Bank Must Register as De- posit Broker. 93–50 ...... 93–50 Circumstances Under Which Well-Capitalized Bank Need Not Notify FDIC of Its Employees’ Status as Deposit Bro- kers. 93–63 ...... 93–63 Bank Deemed as ‘‘Deposit Broker’’ When Engaging in Deposit Support Services and Customer Service Activities. 93–68 ...... 93–68 Section 29 of the FDI Act—Effects of an Institution’s Inability to Accept Brokered Deposits on Pass-Through Cov- erage and the Written Notice Requirement. 93–71 ...... 93–71 Whether Certain Affinity Groups that Endorse the Marketing of Consumer Credit and Deposit Products of a National Bank Are Considered Deposit Brokers. 94–13 ...... 94–13 Whether Bank Is Considered a Deposit Broker When Offering Secured Credit Card Loans to Its Customers. 94–15 ...... 94–15 Is Company a Deposit Broker to the Extent It Refers Its Customers to a Particular Bank. 94–37 ...... 94–37 Deposit Incentive Programs: Would the Bank Be Deemed ‘‘Deposit Broker’’ or Be Confined by Certain Interest Rate Limitations Under Section 29 of the FDI Act. 94–39 ...... 94–39 Brokered Deposits: Are Funds Deposited in a Special Reserve Bank Account for the Exclusive Benefit of Customers Brokered Deposits Under Sections 29 and 29A of the FDI Act. 94–40 ...... 94–40 Deposit Broker: Is an Accounting Service for a Health Care Facility Included Under 12 U.S.C. 1831f. 94–41 ...... 94–41 Requirements For Qualification For ‘‘Second-Tier’’ Broker Exception Under 12 U.S.C. 1831f—1. 94–49 ...... 94–49 Deposit Broker Statute: Whether Well Capitalized Insured Depository Institutions May Accept Deposits From a De- posit Broker Without Restriction. 95–24 ...... 95–24 Interest Rate Restrictions Imposed Through the Brokered Deposit Law. 95–25 ...... 95–25 Applicability of Brokered Deposit Law to National CD Placement Program. 95–9 ...... 95–9 Whether an Insurance Agent Is a Deposit Broker If It Is Compensated By a Bank For Referring Deposit Customers to the Bank. 96–4 ...... 96–4 Whether a Foreign Bank Could Be Considered a Deposit Broker, and if They Would Be Required to Notify the FDIC of Their Status. 99–3 ...... 99–3 Advertisement of ‘‘FDIC Insured’’ CDs by Deposit Brokers. 99–5 ...... 99–5 Deposit Brokers and ‘‘Transferable Custodial Certificates of Deposit.’’

Financial Institution Letters

FIL Number/Title

FIL–42–2016 Frequently Asked Questions on Identifying, Accepting and Reporting Brokered Deposits. FIL–69–2009 Process for Determining in An Institution Subject to Interest-Rate Restrictions is Operating in a High-Rate Area.

Appendix 2 the previous and current national rate caps, where applicable, since 2005. Historical charts illustrating the final national rate cap, the top rates offered, and BILLING CODE 6714–01–P

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IV. Administrative Law Matters

BILLING CODE 6714–01–C Current Actions therefore, may make a notice A. Paperwork Reduction Act Under the final rule: submission to the FDIC. When the • Respondents may file an notice of proposed rulemaking for this 1. Brokered Deposits (RIN 3064–AE84) application with the FDIC for a waiver rule was published, the FDIC invited Certain provisions of the final rule of the prohibition on the acceptance of comments on how its estimates could be contain ‘‘collection of information’’ brokered deposits; improved 104 but received no comments requirements within the meaning of the • Respondents may file a notice on the subject. Paperwork Reduction Act (PRA) of informing the FDIC that the respondent The primary purpose exception based 1995.101 In accordance with the is availing itself of the Primary Purpose on placing less than 25 percent of requirements of the PRA, the FDIC may Exception Based on the Placement of customer assets under administration is not conduct or sponsor, and a Less Than 25 Percent of Customer expected to be utilized largely by respondent is not required to respond Assets Under Administration; broker-dealers. With few exceptions, to, an information collection unless it • Respondents may file a notice broker-dealers must register with the displays a currently valid Office of informing the FDIC that the respondent Securities and Exchange Commission Management and Budget (OMB) control is availing itself of the Primary Purpose and be members of FINRA. There were number. The information collection Exception Based on Enabling 3,517 FINRA registered broker-dealer requirements contained in this final rule Transactions; and firms in 2019. Some of the 3,517 broker- are being submitted to the Office of • Respondents may file an dealers may not engage in activity Management and Budget (OMB) for application with the FDIC for a Primary which meets the definition of ‘‘deposit review and approval under section Purpose Exception Not Based on a broker,’’ while some firms which do 3507(d) of the PRA 102 and section Designated Exception (reporting engage in such activity may not be 1320.11 of the OMB’s implementing requirement to obtain or retain a among the 3,517 FINRA registered regulations.103 FDIC is revising its benefit). broker-dealers. However, in the absence existing information collection entitled The FDIC estimated the annual of data to estimate future respondents, ‘‘Application for Waiver of Prohibition burden associated with the final rule consistent with the changes in the rule on Acceptance of Brokered Deposits’’ based on the following assumptions and relative to the NPR, the FDIC assumes (OMB Control Number 3064–0099) and according to the methodology described that 703 firms will submit notices for a will rename the information collection below: ‘‘designated exception’’ under the ‘‘Reporting Requirements for Brokered 1. The FDIC lacks the data necessary primary purpose exception based on Deposits.’’ to determine the number of third parties placing less that 25 percent of customer which may avail themselves of the assets under administration, in the 101 44 U.S.C. 3501–3521. primary purpose exception based on initial year of implementation. Further, 102 44 U.S.C. 3507(d). placing less than 25 percent of customer 103 5 CFR 1320. assets under administration and 104 85 FR 7453 (Feb. 10, 2020).

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the FDIC assumes that 176 firms will which includes enabling transactions being provided to or paid for the submit notices for a ‘‘designated and placement of less than 25 percent transaction accounts. Finally, a exception’’ under the primary purpose of customer assets under administration, submission of this type would need to exception based on placing less that 25 will be sought by firms engaged in explain how its customers utilize its percent of customer assets under deposit brokering. However, the FDIC is services for the purpose of making administration, on average each year, an unable to determine the number of firms payments and not for the receipt of a ongoing basis. which engage in deposit brokering. deposit placement service or deposit 2. The FDIC lacks the data necessary According to Census data, there are insurance: And provide a description of to determine the number of third parties 1,223 establishments within the the deposit placement arrangement. which may avail themselves of the industry in which deposit brokers are Because this submission requires more primary purpose exception based on classified. Not all 1,223 establishments time to prepare than the first, the FDIC enabling transactions and other business engage in deposit brokering, and some estimated it would take each respondent arrangements and may elect to make a firms which engage in deposit brokering five hours on average the gather the notice submission to the FDIC. When may be classified in another industry. required material and submit the notice. the notice of proposed rulemaking for Additionally, the FDIC assumes that 245 7. The application for a primary this rule was published, the FDIC firms submit applications for a primary purpose exception from the definition of invited comments on how its estimates purpose exception in the initial year of deposit broker not based on a could be improved but received no implementation. Finally, in the absence designated exception, which includes comments on the subject. of data to estimate future respondents, enabling transactions and placement of The FDIC believes that the primary the FDIC assumes that an additional 61 less than 25 percent of customer assets purpose exception based on enabling will submit an application for a primary under administration, requires the items transactions and on other business purpose exception, on average each enumerated in the regulation, and due arrangements will be utilized by firms year, on an ongoing basis. to the number of items requested, the engaged in deposit brokering. The FDIC 4. The FDIC lacks the data necessary FDIC estimates it would take each lacks the data necessary to determine to determine the number of business respondent 10 hours on average to the number of firms which engage in lines for which firms may submit gather the material required and submit deposit brokering. According to Census applications, and in the absence of a the application. data, there are 1,223 establishments more refined estimate, assumed that all within the industry in which deposit respondents submit one application. 8. Each notice submission or brokers are classified. Not all 1,223 5. The FDIC estimated the amount of application has associated quarterly establishments engage in deposit time required to complete each notice (ongoing) reporting requirements. For brokering, and some firms which engage submission and application type. The approved applications these ongoing in deposit brokering may be classified in notice submission for a primary purpose requirements are to be spelled out by another industry. In the absence of data exception to the definition of deposit the FDIC in its written approval. For the to estimate future respondents, broker based on placing less than 25 first notice submission, the FDIC consistent with the changes in the rule percent of customer assets under estimates it would take each respondent relative to the NPR, the FDIC assumes administration, by business line, with an average of 30 minutes per quarter to that 245 firms will submit notices in IDIs. For this type of submission two gather the information and submit the reliance on the enabling transactions items are required: (1) The total amount information for an annual average of 2 designated exception in the initial year of customer assets under control by the burden hours. For the second notice of implementation. Finally, in the third party for that particular business submission, the FDIC estimates it will absence of data to estimate future line, and (2) the total amount of deposits take reach respondent an average of 30 respondents, the FDIC assumes that 61 placed by the third party on behalf of its minutes per year to gather and submit will file a notice in reliance upon the customers, for that particular business the information. The FDIC assumes that enabling transactions designated line, at all IDIs, exclusive of the amount the initial quarterly submission may exception, or a designated exception of brokered CDs being placed by that take longer to prepare, but once identified in the future that requires a third party. Given the ‘‘bright line’’ reporting systems are in place, the FDIC notice, and an additional 61 will submit nature of this primary purpose believes an average of 30 minutes per an application, on average each year, on exception, and the limited number of quarter is a reasonable estimate for this an ongoing basis. line items required, the FDIC estimated ongoing reporting burden. For the 3. The FDIC lacks the data necessary it would take each respondent three application requirement, due to its to determine the number of third parties hours on average to gather the material greater number of required items, is which may avail themselves of the and submit the information required for estimated to take each respondent an primary purpose exception not based on this notice submission. average of 0.25 hours per quarter to one of the designated enabling 6. The notice submission for a gather the information and submit it for transactions or placement of less than primary purpose exception to the an annual average of 1 burden hour. 25 percent of customer assets under definition of deposit broker based on 9. The FDIC revised its estimates for administration, and do not meet a placing funds to enable transactions the information collection ‘‘Application designated exception. When the notice requires an entity to submit the for Waiver of Prohibition on Acceptance of proposed rulemaking for this rule was following information: A copy of the of Brokered Deposits.’’ The FDIC published, the FDIC invited comments form of contract used with customers estimates nine IDIs will file this on how its estimates could be improved and with the IDIs in which the third application each year, on average. Each but received no comments on the party is placing deposits, showing that IDI applicant will spend six hours, on subject. all of its customer deposits are in average, to file. Thus, the FDIC The FDIC believes that the exceptions transaction accounts, and that no estimates the average annual burden at not based on a designated exception, interest, fees, or other remuneration is 54 hours.

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ESTIMATED ANNUAL BURDEN

Estimated Estimated Total Type of Obligation to average Estimated time per Frequency of estimated Information collection (IC) description burden respond number of number of response response annual burden respondents responses (hours) (hours)

Initial Implementation

Notice submission for Primary Purpose Excep- Reporting ...... Obtain or Retain a 703 1 3 On Occasion... 2,109 tion Based on the Placement of Less Than Benefit. 25 Percent of Customer Assets Under Ad- ministration. Notice submission for Primary Purpose Excep- Reporting ...... Obtain or Retain a 245 1 5 On Occasion ... 1,225 tion Based on Enabling Transactions. Benefit. Application for Primary Purpose Exception Not Reporting ...... Obtain or Retain a 245 1 10 On Occasion ... 2,450 Based on the Business Arrangements that Benefit. do not meet a Designated Exception.

Ongoing

Notice submission for Primary Purpose Excep- Reporting ...... Obtain or Retain a 176 4 0.5 Quarterly...... 352 tion Based on the Placement of Less Than Benefit. 25 Percent of Customer Assets Under Ad- ministration. Notice Submission for Primary Purpose Excep- Reporting ...... Obtain or Retain a 61 1 0.5 Annual...... 30.5 tion Based on Enabling Transactions. Benefit. Reporting for Primary Purpose Exception Not Reporting ...... Obtain or Retain a 61 4 0.25 Quarterly...... 61 Based on the Business Arrangements that Benefit. do not meet a Designated Exception. Application for Waiver of Prohibition on Accept- Reporting ...... Obtain or Retain a 9 1 6 On Occasion... 54 ance of Brokered Deposits. Benefit.

Total Estimated Annual Burden Hours ...... 6,281.5 Note: The estimated number of respondents in the Initial Implementation section is an annual average calculated over three years.

2. Interest Rate Restrictions (RIN Generally, the FDIC considers a environment, and products since the 3064–AF02) significant effect to be a quantified effect agency’s regulations relating to brokered In accordance with the requirements in excess of 5 percent of total annual deposits were adopted. Generally of the PRA,105 the FDIC may not salaries and benefits per institution, or speaking, commenters offered conduct or sponsor, and the respondent 2.5 percent of total noninterest information and expressed options that is not required to respond to, an expenses. The FDIC believes that effects suggested the FDIC needed to clarify information collection unless it displays in excess of these thresholds typically and update its historical interpretation a currently valid OMB control number. represent significant effects for FDIC- of the ‘‘deposit broker’’ definition to This final rule does not create a new or insured institutions. better align with current market revise an existing information collection 1. Brokered Deposits Final Rule (AE94) practices and risks associated with as it relates to the interest rate brokered deposits. restrictions. Therefore, no PRA The FDIC does not believe that the clearance submission to OMB will be rule will have a significant economic Policy Objectives made. effect on a substantial number of small entities. However, some expected effects As previously discussed, the FDIC is B. Regulatory Flexibility Act of the rule are difficult to assess or amending its regulations relating to brokered deposits in order to modernize The Regulatory Flexibility Act (RFA) accurately quantify given current those regulations to reflect recent generally requires that, in connection information, therefore the FDIC has technological changes and innovations with a final rule, an agency prepare and included a Final Regulatory Flexibility make available for public comment a Act (RFA) Analysis in this section. that have occurred. Additionally, the FDIC seeks to continue to promote safe final regulatory flexibility analysis Reasons Why This Action Is Being and sound practices by FDIC-insured describing the impact of the rule on Considered 106 depository institutions. small entities. A regulatory flexibility As previously discussed, the FDIC analysis is not required, however, if the issued an ANPR in 2018 to obtain input Legal Basis agency certifies that the rule will not from the public on its brokered deposit have a significant economic impact on and interest rate regulations in light of The FDIC is adopting this rule under a substantial number of small entities. significant changes in technology, authorities granted by Section 29 of the The Small Business Administration business models, the economic FDI Act. The law restricts troubled (SBA) has defined ‘‘small entities’’ to institutions (i.e., those that are not well include banking organizations with total statements for the preceding year.’’ See 13 CFR capitalized) from (1) accepting deposits assets less than or equal to $600 121.201 (as amended by 84 FR 34261, effective Aug. by or through a deposit broker without million.107 19, 2019). In its determination, the ‘‘SBA counts the a waiver and (2) soliciting deposits by receipts, employees, or other measure of size of the concern whose size is at issue and all of its offering rates of interest on deposits that 105 44 U.S.C. 3501–3521. domestic and foreign affiliates.’’ See 13 CFR were significantly higher than the 106 5 U.S.C. 601 et seq. 121.103. Following these regulations, the FDIC uses prevailing rates of interest on deposits 107 The SBA defines a small banking organization a covered entity’s affiliated and acquired assets, offered by other insured depository as having $600 million or less in assets, where an averaged over the preceding four quarters, to organization’s ‘‘assets are determined by averaging determine whether the covered entity is ‘‘small’’ for institutions in such depository the assets reported on its four quarterly financial the purposes of RFA. institution’s normal market area. For a

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more detailed discussion of the rule’s nonbank subsidiaries of small, FDIC- deposits, more institutions may be legal basis please refer to section I(B). insured institutions that may or may not incentivized to accept such deposits. be deemed deposit brokers; and The rule could incentivize the Description of the Rule reporting compliance requirements for development of banking relationships A person meets the ‘‘deposit broker’’ small, covered entities. between small, FDIC-insured definition under Section 29 of the FDI institutions and other firms. The new Act if it is engaged in the business of All Small, FDIC-Insured Institutions opportunities could spur growth in the placing deposits, or facilitating the The rule could immediately affect the types of companies that provide third placement of deposits, of third parties 1,086 small, FDIC-insured institutions party deposit placement services, with insured depository institutions or currently reporting brokered deposits. potentially resulting in greater access to, the business of placing deposits with Going forward, the rule could affect all or use of, bank deposits by a greater insured depository institutions for the 3,665 small, FDIC-insured institutions variety of customers. Further, such purpose of selling interests in those whose decisions regarding the types of growth could be of benefit to small, deposits to third parties. An agent or deposits to accept could be affected. FDIC-insured institutions allowing them trustee meets the ‘‘deposit broker’’ The rule would benefit insured to compete against large financial definition when establishing a deposit institutions and other interested parties institutions that are utilizing internet account to facilitate a business by providing greater legal clarity based deposit gathering methods across arrangement with an insured depository regarding the classification and the country. It is difficult to accurately institution to use the proceeds of the treatment of brokered deposits. The estimate such potential effects with the account to fund a prearranged loan. FDIC believes that as result of this information available to the FDIC, Additionally, Section 29 provides nine increased clarity, the rule would reduce because such effects depend, in part, on statutory exceptions to the definition of the extent of reliance by banks and third the future commercial development of deposit broker and, as noted earlier, the parties on FDIC Staff Advisory Opinions such activities. FDIC added one regulatory exception to and informal written and telephonic FDIC deposit insurance assessments the definition. The FDIC is adopting a inquiries with FDIC staff. This would would be affected by the changes to the new framework for analyzing certain have two important benefits. First, the definition of deposit broker, potentially provisions of the statutory definition. likelihood of inconsistent outcomes, affecting any insured institution that Among other things, through this where some institutions may report currently accepts brokered deposits or rulemaking, the FDIC is amending the certain types of deposits as brokered might do so in the future. Since 2009, primary purpose exception. For a more and others do not, would be reduced. significant concentrations of brokered detailed description of the rule please Second, to the extent the classification deposits can increase an institution’s refer to section I(C) ‘‘Final Rule and of deposits as brokered or non-brokered quarterly assessments, depending on Discussion of Comments.’’ can be clearly addressed in regulation, other factors. To the extent that certain the need for potentially time-consuming deposits would no longer be considered Small Entities Affected analyses can be minimized. brokered deposits under this rule, a The FDIC insures 5,075 depository The FDIC has heard from a number of bank’s assessment may decrease, all else institutions, of which 3,665 are defined insured institutions that they perceive a equal. as small institutions by the terms of the stigma associated with accepting Small, FDIC-insured institutions RFA.108 Additionally, of those 3,665 brokered deposits. Historical experience could benefit from the rule by having small, FDIC-insured institutions, 1,086 has been that higher use of deposits greater certainty and greater access to currently report holding some volume of currently reported to the FDIC as funding sources that would no longer be brokered deposits. Further, of those brokered has been associated with designated as brokered deposits, thereby 3,665 small, FDIC-insured institutions, higher probability of bank failure and easing their liquidity planning in the 3,656 are currently classified as well higher deposit insurance fund loss event they fall below well capitalized capitalized, while nine are less than rates.110 The funding characteristics of and become subject to the restrictions well capitalized based on capital ratios brokered deposits, however, are non- set forth in the law and regulations and reported in their Call Reports.109 uniform. For example, brokered CDs are reducing the likelihood that a liquidity Expected Effects often used by bank customers searching failure of an otherwise viable institution for relatively high yields on their might be precipitated by the brokered There are potentially three four insured deposits, rather than as part of deposit regulations. Another benefit of categories of effects of the rule on small, a relationship with a bank, and as such the rule could result if greater access to FDIC-insured institutions: Effects these deposits may be less stable and funding sources supported small FDIC- applicable to potentially any small, more subject to deposit interest rate insured institutions’ ability to provide insured institution; effects applicable to competition. The behavior of deposits credit. However, these effects are small, less than well-capitalized placed through certain sweep difficult to estimate because the institutions; effects applicable to arrangements or that underlie prepaid decision to receive third party deposits depends on the specific financial 108 card programs may be more based on a Call Report, June 30, 2020. Nine insured conditions of each bank, fluctuating domestic branches of foreign banks are excluded business relationship than on interest from the count of FDIC-insured depository rate competition. Given limitations on market conditions for third party institutions. These branches of foreign banks are not available data, however, historical deposits, and future management ‘‘small entities’’ for purposes of the RFA. studies have not been able to decisions. 109 Information based on June 30, 2020 The rule would establish reporting Consolidated Reports of Condition and Income. The differentiate the experience of banks 9 institutions do not include any quantitatively well based on the different types of deposits requirements for IDIs and other nonbank capitalized institutions that may have been accepted. To the extent the rule reduces third parties that apply for and maintain administratively classified as less than well bankers’ perception of a stigma a primary purpose exception. As noted capitalized. See generally, FDIC—12 CFR previously, however, the FDIC 324.403(b)(1)(v); Board of Governors of the Federal associated with certain types of Reserve System—12 CFR 208.43(b)(1)(v); Office of anticipates that nonbank third parties the Comptroller of the Currency—12 CFR 110 See FDIC’s 2011 Study on Core and Brokered are likely to apply on their own behalf, 6.4(c)(1)(v). Deposits, July 8, 2011. given that the information required to

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complete an application will be in subsidiaries of small, FDIC-insured establishes reporting requirements for possession of the nonbank third party institutions could employ or seek to an estimated 176 and 703 firms during (rather than the bank). The FDIC views determine whether they meet the the year of implementation, and the potential burden on small FDIC- primary purpose exception. This may between 9 and 245 firms each year after. insured institutions under the rule as include submitting notices or filing The FDIC does not currently have access minimal. applications by some third parties that to data that would facilitate an accurate seek to avail themselves of the primary estimate of how many of these firms are Less Than Well-Capitalized Institutions purpose exception, or by banks considered ‘‘small’’ for the purposes of As discussed previously, the submitting notices or filing application RFA. Therefore, the FDIC believes it is acceptance of brokered deposits is on behalf of such entities. Ongoing possible that the reporting requirements subject to statutory and regulatory reporting by these entities is also of the final rule could affect up to 703 restrictions for those banks that are less potentially expected under the final small entities during the year of than well capitalized. Adequately rule. implementation, and up to 245 small capitalized banks may not accept Reporting Requirements entities each year afterword. brokered deposits without a waiver from As previously discussed in the the FDIC, and banks that are less than As previously discussed, the final rule expected Effects Section, in the initial adequately capitalized may not accept establishes some reporting obligations year of implementation the FDIC them at all. As a result, adequately for certain insured depository estimates that the notice for the ‘‘25 capitalized and undercapitalized banks institutions or nonbank third parties 113 percent’’ business relationship will be generally hold less brokered deposits— that meets the ‘‘deposit broker’’ three hours to complete on average, and as of June 30, 2020, brokered deposits definition by either placing (or 0.5 hours per quarter each year after make up approximately 1.3 percent of facilitating the placement of) customer that. In the initial year of domestic deposits held by less than well deposits at insured depository implementation, the FDIC estimates that capitalized banks, well below the 7.7 institutions and seeks to be excluded the notice for the ‘‘enabling percent held by all IDIs.111 By generally from that definition. The rule transactions’’ will take 5 hours to reducing the scope of deposits that are establishes, for entities that do not complete on average, and 0.5 hours each considered brokered, the rule allows engage in one of the designated year after that. In the initial year of less than well capitalized banks to expectations, an application process implementation, the FDIC estimates that increase their holdings of deposits that under which any agent or nominee that the application for exception based on are currently reported as brokered but seeks to avail itself of the primary not enabling transactions and other will not be reported as brokered under purpose exception, or an insured business arrangements, or placing less the final rule. As of June 30, 2020, there depository institution acting on behalf that 25 percent of customer assets under are only nine less than well capitalized of an agent or nominee, could request management will take 10 hours to small, FDIC-insured institutions based that the FDIC consider certain deposits complete on average, and 0.25 hour per on Call Report information. These banks as non-brokered as a result of the quarter each year after that. Therefore, hold approximately $2.5 billion in primary purpose exception. As based on the above assumptions and assets, $1.7 billion in domestic deposits, previously discussed, relative to the methodology, the FDIC estimates the and $21.7 million in brokered NPR, the final rule establishes final rule imposes an annual reporting deposits.112 These banks could be additional designated exceptions that burden of 5,784 hours for the first year directly affected by the rule in that they will not require an application. and 497.5 hours each year after that for could potentially accept more or However, institutions that are eligible all affected entities. This equates to different types of deposits currently for these designated exceptions will be estimated compliance costs of $613,740 designated as brokered. required to file a notice submission to in the first year and $51,589 each year Broadly speaking with respect to the FDIC. Further, certain entities after that for all effected entities.114 future developments, another aspect of granted an exception under the primary brokered deposit restrictions is that, purpose exception may also be subject 114 For the applications relating to exceptions consistent with their statutory purpose, to periodic reporting requirements from the definition of ‘‘deposit broker,’’ the FDIC they act as a constraint on growth and under the final rule. These reporting used the wage estimates from the Bureau of Labor risk-taking by troubled institutions. Statistics (BLS) ‘‘National Industry Specific requirements will allow the FDIC to Occupational Employment and Wage Estimates: Conversely, as noted previously, access monitor the applicability of the primary Securities, Commodity Contracts, and Other to funding can prevent needless purpose exception. Finally, in the event Financial Investments and Related Activities liquidity failures of viable institutions. that an entity that has applied and been Sector’’ (May 2018), while for the Application for Waiver of Prohibition on Acceptance of Brokered Nonbank Subsidiaries of Small, FDIC- approved for a primary purpose Deposits, the FDIC used the wage estimates from Insured Institutions That May or May exception has undergone material the BLS ‘‘National Industry-Specific Occupational Not Be Deposit Brokers changes to its business that renders the Employment and Wage Estimates: Depository Credit business no longer eligible for the Intermediation Sector’’ (May 2018). Other BLS data used were the Employer Cost of Employee The revisions to the brokered deposit primary purpose exception, the FDIC regulations could have effects on some Compensation data (June 2019), and the Consumer will be able to require the entity to refile Price Index (June 2019). Hourly wage estimates at nonbank subsidiaries of small, FDIC- a notice, submit an application, reapply the 75th percentile wage were used, except when insured institutions. For example, for approval, impose additional the estimate was greater than $100, in which case $100 per hour was used, as the BLS does not report subsidiaries of small, FDIC-insured conditions on the approval, or withdraw institutions that may currently meet the hourly wages in excess of $100. The 75th percentile a previously granted approval, with wage information reported by the BLS in the deposit broker definition would no notice to the entity. Specific Occupational Employment and Wage longer be a deposit broker under the As previously discussed in the Estimates does not include health benefits and rule if they solely place deposits at one Expected Effect Section, the final rule other non-monetary benefits. According to the June IDI. Additionally, some nonbank 2019 Employer Cost of Employee Compensation data, compensation rates for health and other 113 The FDIC will look to each separately benefits are 33.8 percent of total compensation. 111 Call Report data, June 30, 2020. incorporated legal entity as its own ‘‘third party’’ Additionally, the wage has been adjusted for 112 Id. for purposes of this application process. Continued

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Again the FDIC does not currently have for a particular deposit product will be September.117 Thus, the FDIC does not access to data that would facilitate an the deposit-weighted average rate for believe the final rule will significantly accurate estimate of how many of these that product. affect any small, FDIC-insured firms are considered ‘‘small’’ for the The FDIC is also adopting the institutions. purposes of RFA. Therefore, therefore proposed methodology for calculating Accordingly, the FDIC certifies that the FDIC believes it is possible that the the national rate caps, with a this rule will not have a significant reporting requirements of the final rule modification suggested by commenters. economic effect on a substantial number could pose reporting compliance costs The proposed methodology defined the of small entities. up to $613,740 in the first year for small national rate cap for a particular deposit One commenter to the NPR suggested entities, and up to $51,589 each year product as the higher of the national that the FDIC sample a larger group of after for small entities. rate plus 75 basis points, or the 95th small banks which could become less than well capitalized and run stress Other Statutes and Federal Rules percentile of rates weighted by domestic deposits. The adopted methodology tests simulating various interest rate The FDIC has not identified any likely defines the national rate cap for a environments to determine whether the duplication, overlap, and/or potential particular deposit product as the higher institutions would be able to raise or conflict between this proposed rule and of the national rate plus 75 basis points retain funding under the proposed rate any other federal rule. or 120 percent of the current yield on caps. Such a stress testing exercise would be difficult and heavily 2. Interest Rate Restrictions (RIN 3064– a similar maturity U.S. Treasury dependent on assumptions not only AF02) obligation, plus 75 basis points. This ‘‘Treasury-based’’ second prong would about the shape and level of the FDIC is revising its regulations Treasury yield curve, but about national relating to interest rate restrictions that also provide that, for non-maturity deposits, the rate cap is defined as the and local demand for loans and deposits apply to less than well capitalized and the nature of deposit interest rate insured depository institutions, by midpoint of the target range for the Federal funds rate, plus 75 basis points. competition resulting from these factors. amending the methodology for In response to the comment, the FDIC Finally, for the local rate cap the FDIC calculating the national rate and notes that as described throughout this is adopting the proposed cap of 90 national rate cap. The also modifies the preamble, the rate caps under this rule percent of the highest offered rate. The current local rate cap calculation and are constructed to be more responsive to final rule also eliminates the current process. the prevailing interest rate environment two-step process where less than well Specifically, the rule defines the and are generally expected to be capitalized institutions request a high national rate for a deposit product as the moderately less restrictive than the rate determination from the FDIC and, if average rate for that product, where the current rate caps. average is weighted by domestic deposit approved, calculate the prevailing rate share. The proposed national rate cap is within local markets. Instead, a less C. Riegle Community Development and the higher of (1) the national rate, as than well capitalized institution must Regulatory Improvement Act of 1994 revised to be based on weighting by notify its appropriate FDIC regional Pursuant to section 302(a) of the deposits rather than branches (and office that it intends to offer a rate that Riegle Community Development and including credit unions), plus 75 basis is above the national rate cap and Regulatory Improvement Act points; or (2) 120 percent of the current provide evidence that it is competing (RCDRIA),118 in determining the yield on similar maturity U.S. Treasury against an institution or credit union effective date and administrative obligations, plus 75 basis points. that is offering a rate in its local market compliance requirements for new Because the FDIC’s experience area in excess of the national rate cap. regulations that impose additional suggests some institutions compete for The institution would then be allowed reporting, disclosure, or other particular products within their local to offer 90 percent of the rate offered by requirements on IDIs, each Federal market area, the rule would continue to a competitor in the institution’s local banking agency must consider, provide a local rate cap process. market area. consistent with the principle of safety Specifically, the rule would allow less As of June 30, 2020, the FDIC insured and soundness and the public interest, than well capitalized institutions to 5,075 institutions, of which 3,665 are any administrative burdens that such provide evidence that any bank or credit small for purposes of the RFA.115 The regulations would place on IDIs, union in its local market offers a rate on adopted national rate caps will affect including small IDIs, and customers of particular deposit product in excess of less than well-capitalized small IDIs, as well as the benefits of such the national rate cap. If sufficient institutions if those institutions regulations. In addition, section 302(b) evidence is provided, then the less than currently offer deposit products with of RCDRIA requires new regulations and well capitalized institution would be rates above the adopted caps and their amendments to regulations that impose allowed to offer 90 percent of the local competitors do not offer similarly additional reporting, disclosures, or competing institution’s rate on the high rates. As of June 30, 2020, 10 other new requirements on IDIs particular product. insured institutions are quantitatively generally to take effect on the first day As described in section II(G), above, less than well-capitalized, of which nine of a calendar quarter that begins on or the FDIC is adopting the national rate are small for purposes of the RFA.116 after the date on which the regulations methodology as proposed, with a None of the eight small, less than well- are published in final form.119 The FDIC revision to include the rates offered by capitalized institutions for which the considered the administrative burdens credit unions in addition to the rates FDIC had interest rate data offered rates offered by FDIC-insured institutions. above either the current national rate 117 The FDIC surveyed rates offered on savings, Under the final rule, the national rate caps or the national rate caps as defined interest checking, and money market demand in this final rule across 11 deposit accounts, as well as CDs of 1, 3, 6, 12, 24, 36, 48, inflation according to BLS data on the Consumer products analyzed for the month of and 60-month maturities. Only non-jumbo accounts Price Index for Urban Consumers (CPI–U), so that were considered, and not every institution offered it is contemporaneous with the non-wage every type of account. compensation statistic. The inflation rate was 1.86 115 June 30, 2020, Call Report data. 118 12 U.S.C. 4802(a). percent between May 2018 and June 2019. 116 Id. 119 12 U.S.C. 4802.

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and benefits of the final rule in 12 CFR Part 337 limits placed on the terms, solicitation determining its effective date and Banks, banking, Reporting and and use of brokered deposits; (iv) How brokered deposits are costed administrative compliance recordkeeping requirements, Savings and compared to other funding requirements. As such, the final rule associations, Securities. will be effective on April 1, 2021, with alternatives and how they are used in full compliance with the brokered Authority and Issuance the institution’s lending and investment deposit part of the regulation extended For the reasons stated in the activities, including a detailed to January 1, 2022. preamble, the FDIC amends 12 CFR discussion of asset growth plans; (v) Procedures and practices used to parts 303 and 337 as follows: D. Congressional Review Act solicit brokered deposits, including an PART 303—FILING PROCEDURES identification of the principal sources of For purposes of the Congressional such deposits; Review Act, the OMB makes a ■ 1. The authority citation for part 303 (vi) Management systems overseeing determination as to whether a final rule continues to read as follows: the solicitation, acceptance and use of constitutes a ‘‘major’’ rule.120 If a rule is brokered deposits; deemed a ‘‘major rule’’ by the OMB, the Authority: 12 U.S.C. 378, 1464, 1813, 1815, (vii) A recent consolidated financial 1817, 1818, 1819(a), (Seventh and Tenth), Congressional Review Act generally 1820, 1823, 1828, 1831a, 1831e, 1831o, statement with balance sheet and provides that the rule may not take 1831p–1, 1831w, 1835a, 1843(I), 3104, 3105, income statements; and effect until at least 60 days following its 3108, 3207, 5414, 5415 and 15 U.S.C. 1601– (viii) The reasons the institution publication.121 The Congressional 1607. believes its acceptance, renewal, or rollover of brokered deposits would Review Act defines a ‘‘major rule’’ as ■ 2. Revise § 303.243 to read as follows: any rule that the Administrator of the pose no undue risk. (4) Additional information. The FDIC Office of Information and Regulatory § 303.243 Brokered deposits. may request additional information at Affairs of the OMB finds has resulted in (a) Brokered deposit waivers—(1) any time during processing of the or is likely to result in (A) an annual Scope. Pursuant to section 29 of the FDI application. effect on the economy of $100,000,000 Act (12 U.S.C. 1831f) and part 337 of (5) Expedited processing for eligible or more; (B) a major increase in costs or this chapter, an adequately capitalized depository institutions. An application prices for consumers, individual insured depository institution may not filed under this section by an eligible industries, Federal, State, or local accept, renew or roll over any brokered depository institution as defined in this government agencies or geographic deposits unless it has obtained a waiver paragraph will be acknowledged in regions; or (C) significant adverse effects from the FDIC. A well-capitalized writing by the FDIC and will receive on competition, employment, insured depository institution may expedited processing, unless the investment, productivity, innovation, or accept brokered deposits without a applicant is notified in writing to the on the ability of United States-based waiver, and an undercapitalized insured contrary and provided with the basis for depository institution may not accept, enterprises to compete with foreign that decision. For the purpose of this renew or roll over any brokered deposits based enterprises in domestic and section, an applicant will be deemed an under any circumstances. This section export markets.122 As required by the eligible depository institution if it contains the procedures to be followed Congressional Review Act, the FDIC satisfies all of the criteria contained in to file with the FDIC for a brokered § 303.2(r) except that the applicant may will submit the final rule and other deposit waiver. The FDIC will provide appropriate reports to Congress and the be adequately capitalized rather than notice to the depository institution’s well-capitalized. The FDIC may remove Government Accountability Office for appropriate federal banking agency and review. an application from expedited any state regulatory agency, as processing for any of the reasons set E. Use of Plain Language appropriate, that a request for a waiver forth in § 303.11(c)(2). Absent such has been filed and will consult with removal, an application processed Section 722 of the Gramm-Leach such agency or agencies, prior to taking under expedited procedures will be 123 Bliley Act requires the Federal action on the institution’s request for a deemed approved 21 days after the banking agencies to use plain language waiver. Prior notice and/or consultation FDIC’s receipt of a substantially in all proposed and final rules shall not be required in any particular complete application. published after January 1, 2000. The case if the FDIC determines that the (6) Standard processing. For those FDIC has sought to present the final rule circumstances require it to take action filings which are not processed in a simple and straightforward manner without giving such notice and pursuant to the expedited procedures, and did not receive any comments on opportunity for consultation. the FDIC will provide the applicant the use of plain language. (2) Where to file. Applicants shall with written notification of the final submit a letter application to the action as soon as the decision is List of Subjects appropriate FDIC office. rendered. (3) Content of filing. The application 12 CFR Part 303 (7) Conditions for approval. A waiver shall contain the following: issued pursuant to this section shall: Administrative practice and (i) The time period for which the (i) Be for a fixed period, generally no procedure, Bank deposit insurance, waiver is requested; longer than two years, but may be Banks, banking, Reporting and (ii) A statement of the policy extended upon refiling; and recordkeeping requirements, Savings governing the use of brokered deposits (ii) May be revoked by the FDIC at any Associations. in the institution’s overall funding and time by written notice to the institution. liquidity management program; (b) Primary purpose exception notices 120 5 U.S.C. 801 et seq. (iii) The volume, rates and maturities and applications—(1) Scope. This 121 5 U.S.C. 801(a)(3). of the brokered deposits held currently section sets forth a process for an agent 122 5 U.S.C. 804(2). and anticipated during the waiver or nominee, or an insured depository 123 12 U.S.C. 4809. period sought, including any internal institution on behalf of an agent or

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nominee, to notify the FDIC that it will customers, for that particular business transactions with fees, interest, or other rely upon a designated exception in line, at all depository institutions, being remuneration provided to the depositor. § 337.6(a)(5)(v)(I)(1)(i) and (ii) of this placed by that third party. Applicants that seek the primary chapter. This section also sets forth a (B) Enabling transactions test (as purpose exception where customer process for an agent or nominee, or an described in § 337.6(a)(5)(v)(I)(1)(ii) of funds that are placed at depository insured depository institution on behalf this chapter). (1) Contractual evidence institutions are placed into transaction of an agent or nominee, to apply for the that there is no interest, fees, or other accounts, and fees, interest, or other primary purpose exception, as described remuneration, being paid to any remuneration are provided to the in § 337.6(a)(5)(v)(I)(2) of this chapter. customer accounts; and depositor, must include the following (2) Definitions. For purposes of this (2) A certification that all customer information, with respect to the paragraph (b): deposits that are placed at insured particular business line: (i) Third party means an agent or depository institutions are in (A) Contractual evidence on the nominee that submits a notice that it transaction accounts. amount of interest, fees, or other will rely upon a designated exception in (ii) Additional information for remuneration, being paid on customer § 337.6(a)(5)(v)(I)(1)(i) and (ii) of this notices. The FDIC may request accounts; chapter or applies to be excluded from additional information from the notice (B) Any marketing materials provided the definition of deposit broker filer at any time after receipt of the by the third party to insured depository pursuant to the primary purpose notice. institutions or its customers; exception as described in (iii) Additional notice filers. The FDIC (C) The average number of § 337.6(a)(5)(v)(I)(2) of this chapter. may include notice and/or reporting transactions for all customer accounts, (ii) Notice filer means a third party or requirements as part of a designated and an explanation of how its customers an insured depository institution on exception identified under utilize its services for the purpose of behalf of a third party, that submits a § 337.6(a)(5)(v)(I)(2)(xiv) of this chapter. making payments and not for the receipt written notice that the third party will (iv) Subsequent notices. A notice filer of a deposit placement service or rely upon a designated business that previously submitted a notice deposit insurance; exception in § 337.6(a)(5)(v)(I)(1)(i) and under this section shall submit a (D) The percentage of customer funds (ii) of this chapter. subsequent notice to the FDIC if, at any (iii) Applicant means a third party, or placed in deposit accounts that are not point, the notice filer no longer meets transaction accounts; an insured depository institution on the designated business exception that (E) A description of any additional behalf of a third party, that applies to be was the subject of its previous notice. third parties that provide assistance excluded from the definition of deposit (v) Ongoing requirements for notice with the placement of deposits at broker pursuant to the primary purpose filers. Notice filers that submit a notice insured depository institutions; and exception, as described in under the 25 percent test must provide (F) Any other information that the § 337.6(a)(5)(v)(I)(2) of this chapter. quarterly updates to the FDIC on the FDIC requires to initiate its review and (3) Notice requirement for designated figures described in paragraph render the application complete. business exceptions. A third party, or an (b)(3)(i)(A) of this section that were insured depository institution on behalf provided as part of the written notice. (ii) For applications for primary of a third party, must notify the FDIC Notice filers that submit a notice under purpose exception not covered by through a written notice that the third the enabling transactions test must paragraph (b)(4)(i) of this section. party will rely upon a designated provide an annual certification to the Applicants that seek the primary business exception described in FDIC that the third party continues to purpose exception, other than § 337.6(a)(5)(v)(I)(1)(i) and (ii) of this place all customer funds at insured applications under paragraph (b)(4)(i) of chapter in order to rely on that depository institutions into transaction this section, must include, to the extent designated business exception. accounts and that customers do not applicable: (i) Contents of notice. The notice must receive any interest, fees, or other (A) A description of the deposit include: The designated exception upon remuneration. placement arrangements between the which the third party will rely; a brief (vi) Revocation of primary purpose third party and insured depository description of the business line; the exception. The FDIC may, with notice, institutions for the particular business applicable specific contents for the revoke a primary purpose exception of line, including the services provided by designated exception; either a statement a third party, or a person required to any relevant third parties; that there is no involvement of any submit a notice under paragraph (B) A description of the particular additional third party who qualifies as (b)(3)(iii) of this section, that qualifies business line; a deposit broker or a brief description of for the primary purpose exception due (C) A description of the primary any additional third party that may to reliance on a designated exception, if: purpose of the particular business line; qualify as a deposit broker; and if the (A) The third party no longer meets (D) The total amount of customer notice is provided by a nonbank third the criteria for a designated exception; assets under management by the third party, a list of the insured depository (B) The notice or subsequent reporting party, with respect to the particular institutions that are receiving deposits is inaccurate; or business line; by or through the particular business (C) The notice filer fails to submit (E) The total amount of deposits line. The applicable specific contents required reports. placed by the third party at all insured for the following designated exceptions (4) Application requirements. A third depository institutions, including the are: party, or an insured depository amounts placed with the applicant, if (A) 25 percent test (as described in institution on behalf of a third party, the applicant is an insured depository § 337.6(a)(5)(v)(I)(1)(i) of this chapter). may submit an application to the FDIC institution, with respect to the (1) The total amount of customer assets seeking a primary purpose exception for particular business line. This includes under administration by the third party business relationships not designated in the total amount of term deposits and for that particular business line; and § 337.6(a)(5)(v)(I)(1) of this chapter. transactional deposits placed by the (2) The total amount of deposits (i) For applications for primary third party, but should be exclusive of placed by the third party on behalf of its purpose exception to enable the amount of brokered CDs, as defined

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in § 337.6(a)(5)(v)(I)(3) of this chapter, (vi) Ongoing reporting for (i) For purposes of section 29 of the being placed by that third party; applications. (A) The FDIC will describe Federal Deposit Insurance Act, this (F) Revenue generated from the third any reporting requirements, if section and § 337.7, the terms well party’s activities related to the applicable, as part of its written capitalized, adequately capitalized, and placement, or facilitating the placement, approval for a primary purpose undercapitalized,11 shall have the same of deposits, with respect to the exception. meaning as to each insured depository particular business line; (B) Applicants that receive a written institution as provided under (G) Revenue generated from the third approval for the primary purpose regulations implementing section 38 of party’s activities not related to the exception, shall provide reporting to the the Federal Deposit Insurance Act placement, or facilitating the placement, FDIC and, in the case of an insured issued by the appropriate federal of deposits, with respect to the depository institution, to its primary banking agency for that institution.12 particular business line; Federal regulator, if required under this (ii) If the appropriate federal banking (H) A description of the marketing section. agency reclassifies a well-capitalized activities provided by the third party, (vii) Requesting additional insured depository institution as with respect to the particular business information, requiring re-application, adequately capitalized pursuant to line; imposing additional conditions, and section 38 of the Federal Deposit (I) The reasons the third party meets withdrawing approvals. At any time Insurance Act, the institution so the primary purpose exception; after approval of an application for the reclassified shall be subject to the (J) Any other information the primary purpose exception, the FDIC provisions applicable to such lower applicant deems relevant; and may at its discretion, with written capital category under this section and (K) Any other information that the notice and adequate justification: § 337.7. FDIC requires to initiate its review and (A) Require additional information (iii) An insured depository institution render the application complete. from an applicant to ensure that the shall be deemed to be within a given (iii) Additional information for approval is still appropriate, or for capital category for purposes of this applications. The FDIC may request purposes of verifying the accuracy and section and § 337.7 as of the date the additional information from the correctness of the information provided institution is notified of, or is deemed applicant at any time during processing to an insured depository institution or to have notice of, its capital category, of the application. submitted to the FDIC as part of the under regulations implementing section (iv) Application timing. (A) An application under this section; 38 of the Federal Deposit Insurance Act applicant that submits a complete (B) Require the applicant to reapply issued by the appropriate federal application under this section will for approval; banking agency for that institution. receive a written determination by the (C) Impose additional conditions on * * * * * FDIC within 120 days of receipt of a an approval; or (5) * * * complete application. (D) Withdraw an approval. (B) If an application is submitted that (i) The term deposit broker means: is not complete, the FDIC will, within PART 337—UNSAFE AND UNSOUND (A) Any person engaged in the 45 days of submission, notify the BANKING PRACTICES business of placing deposits of third applicant and explain what is needed to parties with insured depository render the application complete. ■ 3. The authority for 12 CFR part 337 institutions; (C) The FDIC may extend the 120-day continues to read: (B) Any person engaged in the timeframe, if necessary, to complete its Authority: 12 U.S.C. 375a(4), 375b, business of facilitating the placement of review of a complete application, with 1463(a)(1),1816, 1818(a), 1818(b), 1819, deposits of third parties with insured notice to the applicant, for a maximum 1820(d), 1828(j)(2), 1831, 1831f, 5412.4. depository institutions; (C) Any person engaged in the of 120 additional days. ■ 4. Amend § 337.6 by: business of placing deposits with (v) Application approvals. The FDIC ■ a. Revising paragraphs (a) insured depository institutions for the will approve an application— introductory text, (a)(3)(i) through (iii), purpose of selling those deposits or (A) Submitted under paragraph and (a)(5)(i); (b)(4)(i) of this section if the FDIC finds ■ b. Redesignating paragraphs (a)(5)(ii) interests in those deposits to third that the third party’s marketing and (iii) as paragraphs (a)(5)(v) and (vi); parties; and materials indicate that the primary ■ c. Adding new paragraphs (a)(5)(ii) (D) An agent or trustee who purpose of placing customer deposits at and (iii) and paragraph (a)(5)(iv); establishes a deposit account to insured depository institutions is to ■ d. Revising newly redesignated facilitate a business arrangement with enable transactions, and: paragraphs (a)(5)(v)(I) and (a)(5)(vi); an insured depository institution to use (1) Nominal interest, fees, or other ■ e. Removing paragraphs (b)(2)(ii) and the proceeds of the account to fund a remuneration is being paid on any (b)(3)(ii); prearranged loan. customer accounts, or ■ f. Redesignating paragraphs (b)(2)(i) (ii) Engaged in the business of placing (2) The third party’s customers make, and (b)(3)(i) as paragraphs (b)(2) and (3), deposits. A person is engaged in the on average, more than 6 transactions a respectively; business of placing deposits of third month. ■ g. Adding paragraph (b)(4); and parties if that person receives third (B) Submitted under paragraph ■ h. Removing paragraph (f). party funds and deposits those funds at (b)(4)(ii) of this section if the FDIC finds The revisions and additions read as more than one insured depository that the applicant demonstrates that, follows: institution. with respect to the particular business (iii) Engaged in the business of line under which the third party places § 337.6 Brokered deposits. facilitating the placement of deposits. A or facilitates the placement of deposits, (a) Definitions. For the purposes of person is engaged in the business of the primary purpose of the third party’s §§ 337.6 and 337.7, the following facilitating the placement of deposits of business relationship with its customers definitions apply: third parties with insured depository is a purpose other than the placement or * * * * * institutions, by, while engaged in facilitation of the placement of deposits. (3) * * * business, with respect to deposits

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placed at more than one insured with respect to a particular business section 408(p) of the Internal Revenue depository institution, engaging in one line: Code, or Roth individual retirement or more of the following activities: (i) Less than 25 percent of the total accounts under section 408A of the (A) The person has legal authority, assets that the agent or nominee has Internal Revenue Code; contractual or otherwise, to close the under administration for its customers (xiii) A Federal, State, or local agency account or move the third party’s funds is placed at depository institutions; places, or assists in placing, customer to another insured depository (ii) 100 percent of depositors’ funds funds into deposit accounts to deliver institution; that the agent or nominee places, or funds to the beneficiaries of government (B) The person is involved in assists in placing, at depository programs; and negotiating or setting rates, fees, terms, institutions are placed into transactional (xiv) The agent or nominee places, or or conditions for the deposit account; or accounts that do not pay any fees, assists in placing, customer funds into (C) The person engages in interest, or other remuneration to the deposit accounts pursuant to such other matchmaking activities. depositor; relationships as the FDIC specifically (1) A person is engaged in (iii) A property management firm identifies as a designated business matchmaking activities if the person places, or assists in placing, customer relationship that meets the primary proposes deposit allocations at, or funds into deposit accounts for the purpose exception. (2) Approval required for business between, more than one bank based primary purpose of providing property relationships not designated in upon both the particular deposit management services; paragraph (a)(5)(v)(I)(1). An agent or objectives of a specific depositor or (iv) The agent or nominee places, or nominee that does not rely on a depositor’s agent, and the particular assists in placing, customer funds into designated business exception described deposit objectives of specific banks, deposit accounts for the primary in this section must receive an approval except in the case of deposits placed by purpose of providing cross-border under the application process in a depositor’s agent with a bank affiliated clearing services to its customers; § 303.243(b) of this chapter in order to with the depositor’s agent. A proposed (v) The agent or nominee places, or qualify for the primary purpose deposit allocation is based on the assists in placing, customer funds into exception. particular objectives of: deposit accounts for the primary purpose of providing mortgage (3) Brokered CD placements not (i) A depositor or depositor’s agent servicing; eligible for primary purpose exception. when the person has access to specific (vi) A title company places, or assists An agent’s or nominee’s placement of financial information of the depositor or in placing, customer funds into deposit brokered certificates of deposit as depositor’s agent and the proposed accounts for the primary purpose of described in 12 U.S.C. 1831f(g)(1)(A) deposit allocation is based upon such facilitating real estate transactions; shall be considered a discrete and information; and (vii) A qualified intermediary places, independent business line from other (ii) A bank when the person has or assists in placing, customer funds deposit placement businesses in which access to the target deposit-balance into deposit accounts for the primary the agent or nominee may be engaged. objectives of specific banks and the purpose of facilitating exchanges of (4) Brokered CD means a deposit proposed deposit allocation is based properties under section 1031 of the placement arrangement in which a upon such information. Internal Revenue Code; master certificate of deposit is issued by (2) Anti-evasion. Any attempt by a (viii) A broker dealer or futures an insured depository institution in the person to structure a deposit placement commission merchant places, or assists name of the third party that has arrangement in a way that evades in placing, customer funds into deposit organized the funding of the certificate meeting the matchmaking definition in accounts in compliance with 17 CFR of deposit, or in the name of a custodian this section, while still playing an 240.15c3–3(e) or 17 CFR 1.20(a); or a sub-custodian of the third party, ongoing role in providing any function (ix) The agent or nominee places, or and the certificate is funded by related to matchmaking may, upon a assists in placing, customer funds into individual investors through the third finding by and with written notice from deposit accounts for the primary party, with each individual investor the FDIC, result in the person meeting purpose of posting collateral for receiving an ownership interest in the the matchmaking definition. customers to secure credit-card loans; certificate of deposit, or a similar (iv) Engaged in the business—A (x) The agent or nominee places, or deposit placement arrangement that the person is engaged in the business of assists in placing, customer funds into FDIC determines is arranged for a placing, or facilitating the placement of, deposit accounts for the primary similar purpose. deposits as described in paragraph purpose of paying for or reimbursing (vi) Notwithstanding paragraph (a)(5)(ii) or (iii) of this section, qualified medical expenses under (a)(5)(v) of this section, the term deposit respectively, when that person has a section 223 of the Internal Revenue broker includes any insured depository business relationship with third parties, Code; institution that is not well-capitalized, and as part of that relationship, places, (xi) The agent or nominee places, or and any employee of any such insured or facilitates the placement of, deposits assists in placing, customer funds into depository institution, which engages, with insured depository institutions on deposit accounts for the primary directly or indirectly, in the solicitation behalf of the third parties. purpose of investing in qualified tuition of deposits by offering rates of interest (v) * * * programs under section 529 of the (with respect to such deposits) which (I) An agent or nominee whose Internal Revenue Code; are significantly higher than the primary purpose is not the placement of (xii) The agent or nominee places, or prevailing rates of interest on deposits funds with depository institutions; or assists in placing, customer funds into offered by other insured depository (1) Designated business exceptions deposit accounts to enable participation institutions in such depository that meet the primary purpose in the following tax-advantaged institution’s normal market area. exception. Business relationships are programs: Individual retirement * * * * * designated as meeting the primary accounts under section 408(a) of the (b) * * * purpose exception, subject to Internal Revenue Code, Simple (4) Acceptance of nonmaturity § 303.243(b)(3) of this chapter, where, individual retirement accounts under brokered deposits. (i) A nonmaturity

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brokered deposit is accepted by an (b) Computation and publication of (e) Offering products with off-tenor institution that is less than well national rate cap—(1) Computation. maturities. If an institution seeks to offer capitalized— The Corporation will compute the a product with an off-tenor maturity for (A) At the time a new nonmaturity national rate cap for different deposit which the FDIC does not publish the account is opened by or through any products and maturities, as determined national rate cap or that is not offered deposit broker; or by the Corporation based on available by another institution within its local (B) In the case of an existing and reported data. market area, then the institution will be nonmaturity brokered account, or (2) Publication. The Corporation will required to use the rate offered on the accounts, that had been opened by or publish the national rate cap monthly, next lower on-tenor maturity for that through a particular deposit broker: but reserves the discretion to publish product when determining its (1) When the aggregate account more or less frequently, if needed, on applicable national or local rate cap, balance increases above the amount(s) the Corporation’s website. Except as respectively. For example, an institution in the account(s) at the time the provided in paragraph (f) of this section, seeking to offer a 26-month certificate of institution falls to adequately for institutions that are less than well deposit must use the rate offered for a capitalized; or, capitalized at the time of publication, a 24-month certificate of deposit to (2) For agency or nominee accounts, national rate cap that is lower than the determine the institution’s applicable when funds for a new depositor are previously published national rate cap national or local rate cap. There is no credited to the nonmaturity account or will take effect 3 days after publication. off-tenor maturity for nonmaturity accounts. The previously published national rate products such as an interest checking * * * * * cap will remain in effect during this 3- account, savings account, or money ■ 5. Add § 337.7 to read as follows: day period. market deposit account. (c) Application—(1) Well-capitalized (f) Discretion to delay effect of § 337.7 Interest rate restrictions. institutions. A well-capitalized published national rate cap. In the (a) Definitions—(1) National rate. The institution may pay interest without event of a substantial decrease in the weighted average of rates paid by all restriction by this section. published national rate cap from one insured depository institutions and (2) Institutions that are not well month to the next, the Corporation may, credit unions on a given deposit capitalized. An institution that is not in its discretion, delay the date on product, for which data are available, well capitalized may not: Solicit which the published national rate cap where the weights are each institution’s deposits by offering a rate of interest takes effect. The previously published market share of domestic deposits. that exceeds the applicable rate cap; or, national rate cap will remain in effect (2) National rate cap. The higher of: where an institution has accepted until the effective date, as determined (i) National rate plus 75 basis points, brokered deposits pursuant to a waiver by the Corporation, of the subsequent or described in § 337.6(c), pay a rate of published national rate cap. (ii) 120 percent of the current yield on interest that, at the time such deposit is (g) Treatment of nonmaturity deposits similar maturity U.S. Treasury accepted, exceeds the applicable rate for purposes of this section. For obligations plus 75 basis points or, in cap. For purposes of this section, the purposes of this section, the following the case of any nonmaturity deposit, the applicable rate cap is the national rate definitions apply. cap or, if the institution has provided federal funds rate plus 75 basis points. (1) Solicitation of nonmaturity the notice and evidence described in (3) Local market rate cap. Ninety (90) deposits. (i) An institution solicits a subsection (d) of this section, the local percent of the highest interest rate paid nonmaturity deposit when— on a particular deposit product in the market rate cap for deposits gathered in (A) A nonmaturity account is opened; institution’s local market area. An the institution’s local market area. If an institution’s local market rate cap shall institution gathers deposits from more (B) The institution raises the rate be based upon the rate offered on a than one local area, it may seek to pay being paid on a nonmaturity account particular product type and maturity a rate of interest up to its local market existing at the time when the institution period by an insured depository rate cap for deposits gathered in each was last well capitalized; or, institution or credit union that is respective local market area. (C) Funds for a new depositor are accepting deposits at a physical location (d) Notice related to local market rate credited to a nonmaturity account within the institution’s local market cap applicability. An insured depository existing at the time when the institution area. institution that seeks to pay a rate of was last well capitalized. (4) Local market area. An institution’s interest up to its local market rate cap (2) Acceptance of nonmaturity local market area is any readily defined shall provide notice and evidence of the brokered deposits subject to a waiver. A geographical market area in which the highest rate paid on a particular deposit less than well capitalized institution insured depository institution accepts or product in the institution’s local market that accepts nonmaturity brokered solicits deposits, which may include the area to the appropriate FDIC regional deposits subject to waiver, with respect State, county or metropolitan statistical director. The institution shall update its to a particular deposit broker, may not area, in which the insured depository evidence and calculations for existing pay interest in excess of the applicable institution accepts or solicits deposits. and new accounts monthly unless rate cap on: (5) On-tenor and off-tenor maturities. otherwise instructed by the appropriate (i) Any new nonmaturity accounts On-tenor maturities include the FDIC regional director, and retain such opened by or through that particular following term periods: 1-month, 3- information available for at least the two deposit broker; months, 6-months, 12-months, 24- most recent examination cycles and, (ii) An amount of funds that exceeds months, 36-months, 48-months, and 60- upon the FDIC’s request, provide the the amount(s) in the account(s) that, at months. All other term periods are documentation to the appropriate FDIC the time the institution fell to less than considered off-tenor maturities for regional office and to examination staff well capitalized, had been opened by or purposes of this section. during any subsequent examinations. through the particular deposit broker; or

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(iii) For agency or nominee accounts, Federal Deposit Insurance Corporation. Dated at Washington, DC, on December 15, any funds for a new depositor credited By order of the Board of Directors. 2020. to a nonmaturity account or accounts. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2020–28196 Filed 1–21–21; 8:45 am] BILLING CODE 6714–01–P

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Part III

The President

Proclamation 10136—National Sanctity of Human Life Day, 2021 Proclamation 10137—National School Choice Week, 2021 Proclamation 10138—Terminating Suspensions of Entry Into the United States of Aliens Who Have Been Physically Present in the Schengen Area, the United Kingdom, the Republic of Ireland, and the Federative Republic of Brazil Executive Order 13977—Protecting Law Enforcement Officers, Judges, Prosecutors, and Their Families

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Federal Register Presidential Documents Vol. 86, No. 13

Friday, January 22, 2021

Title 3— Proclamation 10136 of January 17, 2021

The President National Sanctity of Human Life Day, 2021

By the President of the United States of America

A Proclamation Every human life is a gift to the world. Whether born or unborn, young or old, healthy or sick, every person is made in the holy image of God. The Almighty Creator gives unique talents, beautiful dreams, and a great purpose to every person. On National Sanctity of Human Life Day, we celebrate the wonder of human existence and renew our resolve to build a culture of life where every person of every age is protected, valued, and cherished. This month, we mark nearly 50 years since the United States Supreme Court’s Roe v. Wade decision. This constitutionally flawed ruling overturned State laws that banned abortion, and has resulted in the loss of more than 50 million innocent lives. But strong mothers, courageous students, and incredible community members and people of faith are leading a powerful movement to awaken America’s conscience and restore the belief that every life is worthy of respect, protection, and care. Because of the devotion of countless pro-life pioneers, the call for every person to recognize the sanctity of life is resounding more loudly in America than ever before. Over the last decade, the rate of abortions has steadily decreased, and today, more than three out of every four Americans support restrictions on abortion. Since my first day in office, I have taken historic action to protect innocent lives at home and abroad. I reinstituted and strengthened President Ronald Reagan’s Mexico City Policy, issued a landmark pro-life rule to govern the use of Title Ten taxpayer funding, and took action to protect the con- science rights of doctors, nurses, and organizations like the Little Sisters of the Poor. My Administration has protected the vital role of faith-based adoption. At the United Nations, I made clear that global bureaucrats have no business attacking the sovereignty of nations that protect innocent life. Just a few months ago, our Nation also joined 32 other countries in signing the Geneva Consensus Declaration, which bolsters global efforts to provide better healthcare to women, protect all human life, and strengthen families. As a Nation, restoring a culture of respect for the sacredness of life is fundamental to solving our country’s most pressing problems. When each person is treated as a beloved child of God, individuals can reach their full potential, communities will flourish, and America will be a place of even greater hope and freedom. That is why it was my profound privilege to be the first President in history to attend the March for Life, and it is what motives my actions to improve our Nation’s adoption and foster care system, secure more funding for Down syndrome research, and expand health services for single mothers. Over the past 4 years, I have appointed more than 200 Federal judges who apply the Constitution as written, includ- ing three Supreme Court Justices—Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. I also increased the child tax credit, so that mothers are financially supported as they take on the noble task of raising strong and healthy children. And, recently, I signed an Executive Order on Protecting Vulnerable Newborn and Infant Children, which defends the truth that every

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newborn baby has the same rights as all other individuals to receive life- saving care. The United States is a shining example of human rights for the world. However, some in Washington are fighting to keep the United States among a small handful of nations—including North Korea and China—that allow elective abortions after 20 weeks. I join with countless others who believe this is morally and fundamentally wrong, and today, I renew my call on the Congress to pass legislation prohibiting late-term abortion. Since the beginning, my Administration has been dedicated to lifting up every American, and that starts with protecting the rights of the most vulner- able in our society—the unborn. On National Sanctity of Human Life Day, we promise to continue speaking out for those who have no voice. We vow to celebrate and support every heroic mother who chooses life. And we resolve to defend the lives of every innocent and unborn child, each of whom can bring unbelievable love, joy, beauty, and grace into our Nation and the entire world. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 22, 2021, as National Sanctity of Human Life Day. Today, I call on the Congress to join me in protecting and defending the dignity of every human life, including those not yet born. I call on the American people to continue to care for women in unexpected pregnancies and to support adoption and foster care in a more meaningful way, so every child can have a loving home. And finally, I ask every citizen of this great Nation to listen to the sound of silence caused by a generation lost to us, and then to raise their voices for all affected by abortion, both seen and unseen. IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of January, in the year of our Lord two thousand twenty-one, and of the Independence of the United States of America the two hundred and forty-fifth.

[FR Doc. 2021–01610 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Proclamation 10137 of January 17, 2021 National School Choice Week, 2021

By the President of the United States of America

A Proclamation As we mark National School Choice Week, my Administration reaffirms its commitment to solving the civil rights issue of our time: educational inequity. We have made substantial progress on this front, but we must continue our efforts to ensure that each and every family in America has the freedom to choose an education that best meets their needs and values. Our Nation currently spends more money per pupil than almost every other industrialized country in the world, yet nearly two-thirds of our youth are not proficient readers, and students across all age groups continue to struggle in math. These failures are largely the result of a one-size-fits- all, industrial-style approach to education. Currently, students are assigned to schools based on where they live, so only those whose families can afford to move to a better-performing school district or can afford private school tuition have a choice in the learning environment that best fits their child’s needs. That is fundamentally unfair and unjust. All Americans, no matter their family income, deserve the opportunity to choose the best educational option for them. What is often forgotten is that the failures of this rigid arrangement dispropor- tionately affect racial minorities and distressed communities, perpetuating a cycle of poverty. We can no longer allow America’s classrooms to be an exception to our Nation’s promise of equal opportunity for all. Instead, we must provide equal access to a quality education for every American student, no matter where they reside. In the land of the free, a child’s zip code should never determine their future. That is why, I recently issued an Executive Order on Expanding Educational Opportunity through School Choice that provides in-person options for low- income parents forced to send their children to virtual school during the pandemic. But we must continue this progress. Therefore, I renew my call to the Congress to pass the Education Freedom Scholarships and Opportunity Act, so we can finally take a giant step towards true liberty for students. This landmark legislation would give more than 1 million children the freedom to attend the school that best fits their needs, and would create more than $5 billion in annual tax credits for those who donate to local scholarship funds, empowering more families to choose the best educational setting for their children. I also call on the Congress to pass the School Choice Now Act, which will ensure every State can fund elementary and high school scholarship programs, so that students do not lose access to their school of choice because of economic disruptions. As too many school districts across the country refuse to open, these scholarships are needed now more than ever so that families unable to afford private tutors or who work during the day can still provide an education for their children. Education will always be one of the most important factors in a child’s future success. That is why I am fighting to empower all families—of all races, backgrounds, and incomes—with the freedom and the resources they need to make the best decisions for their children. In America, more freedom leads to more opportunity—especially in the classroom. By embracing my

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Administration’s school choice policy, we will make sure that every Amer- ican student is able to fulfill their God-given potential. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim January 24 to January 30, 2021, as National School Choice Week. IN WITNESS WHEREOF, I have hereunto set my hand this seventeenth day of January, in the year of our Lord two thousand twenty-one, and of the Independence of the United States of America the two hundred and forty-fifth.

[FR Doc. 2021–01633 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Proclamation 10138 of January 18, 2021

Terminating Suspensions of Entry Into the United States of Aliens Who Have Been Physically Present in the Schengen Area, the United Kingdom, the Republic of Ireland, and the Federative Republic of Brazil

By the President of the United States of America

A Proclamation In the wake of the unprecedented outbreak of COVID–19 in the United States, I took action to suspend and limit the entry of aliens recently present in certain foreign jurisdictions where significant COVID–19 outbreaks had occurred. These jurisdictions included the People’s Republic of China (ex- cluding the Special Administrative Regions of Hong Kong and Macau), the Islamic Republic of Iran, the Schengen Area, the United Kingdom (excluding overseas territories outside of Europe), the Republic of Ireland, and the Federative Republic of Brazil. Understanding that the nature of the threat posed by COVID–19 would evolve over time, I directed the Secretary of Health and Human Services to make recommendations to me regarding whether to continue, modify, or terminate the restrictions that I had previously imposed. On January 12, 2021, the Centers for Disease Control and Prevention (CDC) issued an order, effective January 26, 2021, requiring proof of a negative COVID– 19 test or documentation of having recovered from COVID–19 for all air passengers arriving from a foreign country to the United States. The Secretary has explained that this action will help to prevent air passengers from the Schengen Area, the United Kingdom, the Republic of Ireland, and the Federative Republic of Brazil from spreading the virus that causes COVID– 19 into the United States, as it is the Secretary’s understanding that the vast majority of persons entering the United States from these jurisdictions do so by air. Moreover, the Secretary expects cooperation from those jurisdictions in im- plementing the testing order. Public health officials in the jurisdictions have a proven record of working with the United States to share accurate and timely COVID–19 testing and trend data, and the United States has active collaborations with the jurisdictions regarding how to make travel safe between our respective countries. As a result of that record, the Secretary reports high confidence that these jurisdictions will cooperate with the United States in the implementation of CDC’s January 12, 2021, order and that tests administered there will yield accurate results. This cooperation stands in stark contrast to the behavior of the governments and state-owned enterprises of the People’s Republic of China and the Islamic Republic of Iran, which repeatedly have failed to cooperate with the United States public health authorities and to share timely, accurate information about the spread of the virus. Those jurisdictions’ responses to the pandemic, their lack of transparency, and their lack of cooperation with the United States thus far in combatting the pandemic, cast doubt on their cooperation in implementing CDC’s January 12, 2021, order. Accordingly, the Secretary has advised me to remove the restrictions applica- ble to the Schengen Area, the United Kingdom, the Republic of Ireland, and the Federative Republic of Brazil, while leaving in place the restrictions

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applicable to the People’s Republic of China and the Islamic Republic of Iran. I agree with the Secretary that this action is the best way to continue protecting Americans from COVID–19 while enabling travel to resume safely. NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States, by the authority vested in me by the Constitution and the laws of the United States of America, including sections 212(f) and 215(a) of the Immigra- tion and Nationality Act, 8 U.S.C. 1182(f) and 1185(a), hereby find that the unrestricted entry into the United States of persons who have been physically present in the Schengen Area, the United Kingdom (excluding overseas territories outside of Europe), the Republic of Ireland, and the Federative Republic of Brazil is no longer detrimental to the interests of the United States and find that it is in the interest of the United States to terminate the suspension of entry into the United States of persons who have been physically present in those jurisdictions. Accordingly, I hereby proclaim: Section 1. Terminations. Proclamation 9993 of March 11, 2020 (Suspension of Entry as Immigrants and Nonimmigrants of Certain Additional Persons Who Pose a Risk of Transmitting 2019 Novel Coronavirus), Proclamation 9996 of March 14, 2020 (Suspension of Entry as Immigrants and Non- immigrants of Certain Additional Persons Who Pose a Risk of Transmitting 2019 Novel Coronavirus), and Proclamation 10041 of May 24, 2020 (Suspen- sion of Entry as Immigrants and Nonimmigrants of Certain Additional Persons Who Pose a Risk of Transmitting 2019 Novel Coronavirus), are hereby termi- nated effective at 12:01 a.m. eastern standard time on January 26, 2021. Sec. 2. General Provisions. (a) Nothing in this proclamation shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This proclamation shall be implemented in a manner consistent with applicable law and subject to the availability of appropriations. (c) This proclamation is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

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IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of January, in the year of our Lord two thousand twenty-one, and of the Independence of the United States of America the two hundred and forty- fifth.

[FR Doc. 2021–01634 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Executive Order 13977 of January 18, 2021 Protecting Law Enforcement Officers, Judges, Prosecutors, and Their Families

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Purpose. Under the Constitution and Federal law, our Government vests in judges, prosecutors, and law enforcement officers the power to make decisions of enormous consequence. Because of the importance of their work, these public servants face unique risks to their safety and the safety of their families. Some who face or have received an adverse judicial decision have sought to intimidate or punish judges and prosecutors with threats of harm. Moreover, judges, prosecutors, and law enforcement officers are symbols within our communities of law and order and may be targeted for that reason alone. And at times, family members of public servants have become victims. Last year, a former litigant before a Federal judge in New Jersey tragically murdered the judge’s 20-year-old son and critically wounded her husband. Judges, prosecutors, and law enforcement officers’ resiliency in the face of the danger they regularly face is an inspiration for all of us in public service. Judges, prosecutors, and law enforcement officers should not have to choose between public service and subjecting themselves and their families to dan- ger. My Administration has no higher priorities than preserving the rule of law in our country and protecting the men and women who serve under its flag. Accordingly, I am ordering enhanced protections for judges, prosecu- tors, and law enforcement officers. Federal law already allows Federal and State law enforcement officers to protect themselves by carrying a concealed firearm, but the Federal Government can do more to cut the red tape that Federal law enforcement officers must navigate to exercise their right. The current threat to Federal prosecutors also demands an expansion of their ability to carry a concealed firearm, as allowed under the Department of Justice’s existing authorities. Finally, the Congress should act expeditiously to adopt legislation extending the right to carry a concealed firearm to Federal judges and pass other measures that will expand our capacity to combat threats of violence against judges, prosecutors, and law enforcement officers. Sec. 2. Removing Obstacles to Federal Law Enforcement Officers Qualifying For Concealed Carry Under the Law Enforcement Officers Safety Act of 2004. (a) It shall be the policy of the United States to remove any undue obstacle preventing current or retired Federal law enforcement officers from carrying a concealed firearm as allowed under the Law Enforcement Officers Safety Act of 2004, as amended (18 U.S.C. 926B, 926C) (LEOSA). (b) The heads of all executive departments and agencies (agencies) that employ or have employed qualified law enforcement officers or qualified retired law enforcement officers, as those terms are defined in the LEOSA, shall act expeditiously to implement the policy set by subsection (a) of this section. (c) The heads of all agencies that employ or have employed qualified law enforcement officers or qualified retired law enforcement officers, as those terms are defined in the LEOSA, shall submit a report to the President, through the Assistant to the President for Domestic Policy, within 30 days of the date of this order, reporting on the implementation of this order

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and analyzing qualified persons’ ability to carry a concealed firearm under the LEOSA. (d) The report required by subsection (c) of this section shall: (i) identify any obstacles that the agency’s qualified law enforcement offi- cers or qualified retired law enforcement officers presently face in carrying a concealed firearm under the LEOSA; (ii) identify any categories of the agency’s qualified law enforcement offi- cers or qualified retired law enforcement officers who are presently unable to carry a concealed firearm under the LEOSA; (iii) identify the steps the agency has taken to implement the policy set by subsection (a) of this section; and (iv) identify the steps the agency plans to take in the future to implement the policy set by subsection (a) and explain why it was not possible to take these steps before the report was submitted. Sec. 3. Authorizing Concealed Carry By Federal Prosecutors. (a) Within 30 days of the date of this order, the Attorney General shall propose a regulation revising section 0.112 of title 28, Code of Federal Regulations, to provide that the special deputation as a Deputy United States Marshal shall be granted upon request to any Federal prosecutor when the Federal prosecutor or his or her family members face risk of harm as a result of the Federal prosecutor’s government service and as appropriate. (b) The regulation proposed pursuant to this section shall: (i) include with the special deputation the power to possess and carry firearms but not include law enforcement powers such as the power to make arrests for violations of Federal law and the court-related duties of United States Marshals; and (ii) require appropriate training in firearm safety and use as a condition to any special deputation. (c) Within 30 days of the date of this order, the Attorney General shall revise other Department policies to permit special deputation consistent with subsections (a) and (b) of this section to the extent consistent with applicable law. Sec. 4. Expanding the Federal Government’s Protection of Judges, Prosecutors, and Law Enforcement Officers. (a) The Attorney General shall direct the Director of the Marshals Service to prioritize the protection of Federal judges and Federal prosecutors. (b) The Attorney General shall prioritize the investigation and prosecution of Federal crimes involving actual or threatened violence against judges, prosecutors, or law enforcement officers or their family members, if the family member was targeted because of that person’s relation to a judge, prosecutor, or law enforcement officer. (c) The Attorney General and Secretary of Homeland Security shall coordi- nate a review within the executive branch to assess the feasibility, as appro- priate and consistent with applicable law, of facilitating the removal of, or minimizing the availability of, personally identifiable information appear- ing in public sources of judges, prosecutors, and law enforcement officers employed by the Federal Government, and shall use the results of this review to inform such persons of related security vulnerabilities. (d) Within 30 days of the date of this order, the Attorney General shall assess the need to revise subsection 0.111(e) of title 28, Code of Federal Regulations, to protect Federal prosecutors. If any revision is needed, the Attorney General shall take immediate steps to issue a proposed rule that would amend section 0.111(e) accordingly. (e) The heads of all agencies shall examine the extent to which they collect personally identifiable information from judges, prosecutors, or law enforcement officers, and as appropriate and consistent with applicable law, allow such persons to provide a Post Office box address in lieu of home address information.

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Sec. 5. Proposing Legislation to Enhance the Protection of Judges, Prosecutors, and Law Enforcement Officers. (a) Within 30 days of the date of this order, the Attorney General shall develop and propose Federal legislation providing additional protection for judges, prosecutors, and law enforcement officers. (b) The proposed legislation described in subsection (a) of this section shall: (i) authorize current and former Federal judges and current and former Federal prosecutors to possess or carry firearms when they or their family members face risk of harm as a result of their Federal government service, irrespective of Federal, State, and local laws which may restrict the posses- sion or carrying of firearms; (ii) promote the removal and minimization of personally identifiable infor- mation from public websites and records of current and former judges, prosecutors, and law enforcement officers, as appropriate and as allowed under the Constitution; (iii) expand the ability of judges, prosecutors, and law enforcement officers to use Post Office box addresses in lieu of home address information; (iv) authorize additional appropriations and authority for the Department of Homeland Security, Marshals Service, and Federal Bureau of Investiga- tion, including appropriations to hire and train additional personnel and authority for agencies to respond to both civil unrest and threats to Federal courthouses; (v) increase penalties for threatened and actual violence against Federal judges, prosecutors, and law enforcement officers and their families, includ- ing providing that violence against a Federal judge, prosecutor, or law enforcement officer’s family member shall be punished as though the act was committed against the Federal judge, prosecutor, or law enforce- ment officer if the family member was targeted because of that person’s relation to a Federal judge, prosecutor, or law enforcement officer; (vi) prevent State and local governments from obstructing the ability of qualified law enforcement officers and qualified retired law enforcement officers, as those terms are defined by the LEOSA, from carrying a con- cealed firearm pursuant to the LEOSA, including by refusing to issue identification documents; and (vii) propose other amendments to strengthen the LEOSA, if appropriate. Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, January 18, 2021.

[FR Doc. 2021–01635 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Part IV

The President

Executive Order 13978—Building the National Garden of American Heroes Executive Order 13979—Ensuring Democratic Accountability in Agency Rulemaking Executive Order 13980—Protecting Americans From Overcriminalization Through Regulatory Reform Executive Order 13981—Protecting the United States From Certain Unmanned Aircraft Systems

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Federal Register Presidential Documents Vol. 86, No. 13

Friday, January 22, 2021

Title 3— Executive Order 13978 of January 18, 2021

The President Building the National Garden of American Heroes

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Background. In Executive Order 13934 of July 3, 2020 (Building and Rebuilding Monuments to American Heroes), I made it the policy of the United States to establish a statuary park named the National Garden of American Heroes (National Garden). To begin the process of building this new monument to our country’s greatness, I established the Interagency Task Force for Building and Rebuilding Monuments to American Heroes (Task Force) and directed its members to plan for construction of the National Garden. The Task Force has advised me it has completed the first phase of its work and is prepared to move forward. This order revises Executive Order 13934 and provides additional direction for the Task Force. Sec. 2. Purpose. The chronicles of our history show that America is a land of heroes. As I announced during my address at Mount Rushmore, the gates of a beautiful new garden will soon open to the public where the legends of America’s past will be remembered. The National Garden will be built to reflect the awesome splendor of our country’s timeless exceptionalism. It will be a place where citizens, young and old, can renew their vision of greatness and take up the challenge that I gave every American in my first address to Congress, to ‘‘[b]elieve in yourselves, believe in your future, and believe, once more, in America.’’ Across this Nation, belief in the greatness and goodness of America has come under attack in recent months and years by a dangerous anti-American extremism that seeks to dismantle our country’s history, institutions, and very identity. The heroes of 1776 have been desecrated, with statues of George Washington, Thomas Jefferson, and Benjamin Franklin vandalized and toppled. The dead who gave their lives to end slavery and save the Union during the Civil War have been dishonored, with monuments to Abraham Lincoln, Hans Christian Heg, and the courageous 54th Regiment left damaged and disfigured. The brave warriors who saved freedom from Nazi fascism have been disgraced with a memorial to World War II veterans defaced with the hammer and sickle of Soviet communism. The National Garden is America’s answer to this reckless attempt to erase our heroes, values, and entire way of life. On its grounds, the devastation and discord of the moment will be overcome with abiding love of country and lasting patriotism. This is the American way. When the forces of anti- Americanism have sought to burn, tear down, and destroy, patriots have built, rebuilt, and lifted up. That is our history. America responded to the razing of the White House by building it back in the same place with unbroken resolve, to the murders of Abraham Lincoln and Martin Luther King, Jr., with a national temple and the Stone of Hope, and to the terrorism of 9/11 with a new Freedom Tower. In keeping with this tradition, America is responding to the tragic toppling of monuments to our founding generation and the giants of our past by commencing a new national project for their restoration, veneration, and celebration. The National Garden will draw together and fix in the soil of a single place what Abraham Lincoln called ‘‘[t]he mystic chords of memory, stretch- ing from every battlefield, and patriot grave, to every living heart.’’ In the peace and harmony of this vast outdoor park, visitors will come and learn

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the amazing stories of some of the greatest Americans who have ever lived. The National Garden will feature a roll call of heroes who deserve honor, recognition, and lasting tribute because of the battles they won, the ideas they championed, the diseases they cured, the lives they saved, the heights they achieved, and the hope they passed down to all of us—that united as one American people trusting in God, there is no challenge that cannot be overcome and no dream that is beyond our reach. In short, each individual has been chosen for embodying the American spirit of daring and defiance, excellence and adventure, courage and con- fidence, loyalty and love. Astounding the world by the sheer power of their example, each one of them has contributed indispensably to America’s noble history, the best chapters of which are still to come. Sec. 3. Honoring Additional American Heroes. (a) Section 3(c) of Executive Order 13934 is amended by striking the words ‘‘In addition to the require- ments of subsection 3(b) of this order, the proposed options for the’’ and inserting in their place the word ‘‘The’’. (b) Section 3(c)(i) of Executive Order 13934 is amended to read as follows: ‘‘The National Garden should be composed of statues, including statues of Ansel Adams, John Adams, Samuel Adams, Muhammad Ali, Luis Walter Alvarez, Susan B. Anthony, Hannah Arendt, Louis Armstrong, Neil Arm- strong, Crispus Attucks, John James Audubon, Lauren Bacall, Clara Barton, Todd Beamer, Alexander Graham Bell, Roy Benavidez, Ingrid Bergman, Irving Berlin, Humphrey Bogart, Daniel Boone, Norman Borlaug, William Bradford, Herb Brooks, Kobe Bryant, William F. Buckley, Jr., Sitting Bull, Frank Capra, Andrew Carnegie, Charles Carroll, John Carroll, George Washington Carver, Johnny Cash, Joshua Chamberlain, Whittaker Chambers, Johnny ‘‘Appleseed’’ Chapman, Ray Charles, Julia Child, Gordon Chung-Hoon, William Clark, Henry Clay, Samuel Clemens (Mark Twain), Roberto Clemente, Grover Cleve- land, Red Cloud, William F. ‘‘Buffalo Bill’’ Cody, Nat King Cole, Samuel Colt, Christopher Columbus, Calvin Coolidge, James Fenimore Cooper, Davy Crockett, Benjamin O. Davis, Jr., Miles Davis, Dorothy Day, Joseph H. De Castro, Emily Dickinson, Walt Disney, William ‘‘Wild Bill’’ Donovan, Jimmy Doolittle, Desmond Doss, Frederick Douglass, Herbert Henry Dow, Katharine Drexel, Peter Drucker, Amelia Earhart, Thomas Edison, Jonathan Edwards, Albert Einstein, Dwight D. Eisenhower, Duke Ellington, Ralph Waldo Emer- son, Medgar Evers, David Farragut, the Marquis de La Fayette, Mary Fields, Henry Ford, George Fox, Aretha Franklin, Benjamin Franklin, Milton Fried- man, Robert Frost, Gabby Gabreski, Bernardo de Ga´lvez, Lou Gehrig, Theodor Seuss Geisel, Cass Gilbert, Ruth Bader Ginsburg, John Glenn, Barry Gold- water, Samuel Gompers, Alexander Goode, Carl Gorman, Billy Graham, Ulys- ses S. Grant, Nellie Gray, Nathanael Greene, Woody Guthrie, Nathan Hale, William Frederick ‘‘Bull’’ Halsey, Jr., Alexander Hamilton, Ira Hayes, Hans Christian Heg, Ernest Hemingway, Patrick Henry, Charlton Heston, Alfred Hitchcock, Billie Holiday, Bob Hope, Johns Hopkins, Grace Hopper, Sam Houston, Whitney Houston, Julia Ward Howe, Edwin Hubble, Daniel Inouye, Andrew Jackson, Robert H. Jackson, Mary Jackson, John Jay, Thomas Jefferson, Steve Jobs, Katherine Johnson, Barbara Jordan, Chief Joseph, Elia Kazan, Helen Keller, John F. Kennedy, Francis Scott Key, Coretta Scott King, Martin Luther King, Jr., Russell Kirk, Jeane Kirkpatrick, Henry Knox, Tadeusz Kos´ciuszko, Harper Lee, Pierre Charles L’Enfant, Meriwether Lewis, Abraham Lincoln, Vince Lombardi, Henry Wadsworth Longfellow, Clare Boothe Luce, Douglas MacArthur, Dolley Madison, James Madison, George Marshall, Thurgood Marshall, William Mayo, Christa McAuliffe, William McKinley, Louise McManus, Herman Melville, Thomas Merton, George P. Mitchell, Maria Mitchell, William ‘‘Billy’’ Mitchell, Samuel Morse, Lucretia Mott, John Muir, Audie Murphy, Edward Murrow, John Neumann, Annie Oakley, Jesse Owens, Rosa Parks, George S. Patton, Jr., Charles Willson Peale, William Penn, Oliver Hazard Perry, John J. Pershing, Edgar Allan Poe, Clark Poling, John Russell Pope, Elvis Presley, Jeannette Rankin, Ronald Reagan, Walter Reed, William Rehnquist, Paul Revere, Henry Hobson Richardson, Hyman Rickover, Sally Ride, Matthew Ridgway, Jackie Robinson, Norman Rockwell,

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Caesar Rodney, Eleanor Roosevelt, Franklin D. Roosevelt, Theodore Roosevelt, Betsy Ross, Babe Ruth, Sacagawea, Jonas Salk, John Singer Sargent, Antonin Scalia, Norman Schwarzkopf, Junı´pero Serra, Elizabeth Ann Seton, Robert Gould Shaw, Fulton Sheen, Alan Shepard, Frank Sinatra, Margaret Chase Smith, Bessie Smith, Elizabeth Cady Stanton, Jimmy Stewart, Harriet Beecher Stowe, Gilbert Stuart, Anne Sullivan, William Howard Taft, Maria Tallchief, Maxwell Taylor, Tecumseh, Kateri Tekakwitha, Shirley Temple, Nikola Tesla, Jefferson Thomas, Henry David Thoreau, Jim Thorpe, Augustus Tolton, Alex Trebek, Harry S. Truman, Sojourner Truth, Harriet Tubman, Dorothy Vaughan, C. T. Vivian, John von Neumann, Thomas Ustick Walter, Sam Walton, Booker T. Washington, George Washington, John Washington, John Wayne, Ida B. Wells-Barnett, Phillis Wheatley, Walt Whitman, Laura Ingalls Wilder, Roger Williams, John Winthrop, Frank Lloyd Wright, Orville Wright, Wilbur Wright, Alvin C. York, Cy Young, and Lorenzo de Zavala.’’ Sec. 4. Additional Amendments to Executive Order 13934. (a) Section 3(b) of Executive Order 13934 is amended to read as follows: ‘‘The Secretary, in consultation with the Task Force, shall identify a site suitable for the establishment of the National Garden. The Secretary shall proceed with construction of the National Garden at that site, to the extent consistent with the Secretary’s existing authorities or authority later provided by the Congress.’’ (b) Section 7 of Executive Order 13934 is amended to read as follows: ‘‘Definition. The term ‘‘historically significant American’’ means an indi- vidual who made substantive contributions to America’s public life or other- wise had a substantive effect on America’s history.’’ Sec. 5. Funding. (a) The Secretary of the Interior shall provide funding, as appropriate and consistent with available appropriations and applicable law, for the establishment and maintenance of the National Garden. (b) The Chairperson of the National Endowment for the Arts and the Chairperson of the National Endowment for the Humanities, in consultation with the National Council on the Arts and the National Council on the Humanities, respectively, and the Task Force, should target spending one- twelfth of the discretionary funds available to their agencies on commis- sioning statues of individuals set forth in section 3(c)(i) of Executive Order 13934, as amended by section 3(b) of this order, for placement in the National Garden, as appropriate and consistent with applicable law. Sec. 6. Public Report. Until such time as the National Garden is established and includes statues of all individuals set forth in section 3(c)(i) of Executive Order 13934, as amended by section 3(b) of this order, the Task Force shall publish an annual public report describing progress on establishing the National Garden and on building statues of American heroes. This report shall include, as applicable, the steps the Task Force agencies have taken in the preceding year to prepare the National Garden to be opened for public access and listing all statues either commissioned for or placed in the National Garden. Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, January 18, 2021.

[FR Doc. 2021–01643 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Executive Order 13979 of January 18, 2021

Ensuring Democratic Accountability in Agency Rulemaking

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Purpose. American democracy operates on the principle of the consent of the governed. Regular elections for the Congress and the President and Vice President of the United States are designed to ensure that the officials responsible for making and executing the law are held accountable to the American people. The President chooses Federal agency heads who exercise executive authority and implement his regulatory agenda. The Amer- ican people, in electing the President, thereby have a role in choosing the individuals who govern them. However, some agencies have chosen to blur these lines of democratic accountability by allowing career officials to authorize, approve, and serve as the final word on regulations. This practice transfers the power to set rules governing Americans’ daily lives from the President, acting through his executive subordinates, to officials insulated from the accountability that national elections bring. This practice undermines the power of the American people to choose who governs them and I am directing steps to end it. Sec. 2. Rulemaking by Senior Appointees. (a) To the extent permitted by law, the head of each agency shall: (i) require that agency rules promulgated under section 553 of title 5, United States Code (section 553), must be signed by a senior appointee; and (ii) require that only senior appointees may initiate the rulemaking process for agency rules promulgated under section 553 or may approve the agen- cy’s regulatory agenda. (b) Subsection (a) of this section shall not apply if the agency head: (i) determines that compliance with this section would impede public safety or security; and (ii) submits to the Administrator of the Office of Information and Regulatory Affairs (Administrator) within the Office of Management and Budget a notification disclosing the reasons for the exemption and publishes such notification, consistent with public safety, security, and privacy interests, in the Federal Register. (c) An agency head may not delegate authority to make the determination allowed by subsection (b) of this section. (d) The head of each agency shall ensure that the issuance of future agency rules promulgated under section 553 adheres to the requirements of this section. Sec. 3. Review of Existing Delegations of Rulemaking Authority. Within 180 days of the date of this order, the head of each agency shall, to the extent permitted by law: (a) review delegations of authority regarding rulemaking and make any revisions necessary to ensure that such delegations are consistent with section 2 of this order; and (b) amend agency regulations governing agency management and procedure to incorporate the requirements of section 2 of this order.

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Sec. 4. Review of Existing Rules. (a) Within 90 days of the date of this order, the head of each agency shall review all significant rules the agency has issued over the last 12 years, and any other rules identified by the Administrator, to determine whether the rule was issued by a senior ap- pointee. For good cause shown, the Administrator may authorize an extension of the period within which an agency shall conduct such review. (b) Within 120 days of the date of this order, the head of each agency shall provide a report to the President, through the Administrator, summa- rizing the findings of the review. For good cause shown, the Administrator may authorize an extension of the deadline to provide such report. Sec. 5. Definitions. For the purposes of this order, the term: (a) ‘‘agency’’ has the meaning given that term in section 3(b) of Executive Order 12866 of September 30, 1993 (Regulatory Planning and Review), as amended, or any successor order; except that for purposes of this order: (i) the term shall include the Consumer Financial Protection Bureau; and (ii) the term shall not include the Federal Bureau of Prisons of the Depart- ment of Justice; (b) ‘‘senior appointee’’ means an individual appointed by the President, or performing the functions and duties of an office that requires appointment by the President, or a non-career member of the Senior Executive Service (or equivalent agency system); (c) ‘‘significant rule’’ means any rule that is also a ‘‘significant regulatory action’’ as defined in section 3(f) of Executive Order 12866, as amended, or any successor order; and (d) ‘‘rule’’ has the meaning given that term in section 551(4) of title 5, United States Code, except that such term does not include any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties. Sec. 6. Implementation. The Administrator shall provide guidance on the implementation of this order and shall monitor agency compliance with the order. Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, January 18, 2021.

[FR Doc. 2021–01644 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Executive Order 13980 of January 18, 2021 Protecting Americans From Overcriminalization Through Regulatory Reform

By the authority vested in me as President by the Constitution and the laws of the United States of America, and to improve transparency with respect to the consequences of violating certain regulations and to protect Americans from facing unwarranted criminal punishment for unintentional violations of regulations, it is hereby ordered as follows: Section 1. Purpose. In the interest of fairness, Federal criminal law should be clearly written so that all Americans can understand what is prohibited and act accordingly. Some statutes have authorized executive branch agencies to promulgate thousands of regulations, creating a thicket of requirements that can be difficult to navigate, and many of these regulations are enforceable through criminal processes and penalties. The purpose of this order is to alleviate regulatory burdens on Americans by ensuring that they have notice of potential criminal liability for violations of regulations and by focusing criminal enforcement of regulatory offenses on the most culpable individuals. Sec. 2. Policy. It is the policy of the Federal Government that: (a) Agencies promulgating regulations that may subject a violator to crimi- nal penalties should be explicit about what conduct is subject to criminal penalties and the mens rea standard applicable to those offenses; (b) Strict liability offenses are ‘‘generally disfavored.’’ United States v. United States Gypsum, Co., 438 U.S. 422, 438 (1978). Where appropriate, agencies should consider administrative or civil enforcement of strict liability regulatory offenses, rather than criminal enforcement of such offenses; and (c) Criminal prosecution based on regulatory offenses is most appropriate for those persons who know what is prohibited or required by the regulation and choose not to comply, thereby causing or risking substantial public harm. Criminal prosecutions based on regulatory offenses should focus on matters where a putative defendant had actual or constructive knowledge that conduct was prohibited. Sec. 3. Definitions. For the purposes of this order: (a) ‘‘Agency’’ has the meaning given to ‘‘Executive agency’’ in section 105 of title 5, United States Code. (b) ‘‘Mens rea’’ means the state of mind that by law must be proven to convict a particular defendant of a particular crime. There are several such mental states in the law applied by Federal courts. Two common mental states are ‘‘knowingly’’ and ‘‘willfully.’’ A defendant acts ‘‘knowingly’’ with respect to an element of the offense if he or she has knowledge of the essential facts comprising that element. In addition, a defendant ‘‘willfully’’ violates a statute if he or she acts with a ‘‘bad purpose’’ that is with ‘‘knowledge that his [or her] conduct is unlawful.’’ Model Criminal Jury Instructions (3d Cir. 2018), ch. 5, sec. 5.02 cmt. (quotation marks omitted). By contrast, strict liability offenses do not require the government to prove mens rea. For instance, the jury instructions for the United States Court of Appeals for the Third Circuit note that ‘‘[s]ome federal crimes are also strict or absolute liability offenses, without any mental state require- ment.’’ Id. at ch. 5, General Introduction to Mental State Instructions. (c) ‘‘Person’’ has the meaning given it in section 1 of title 1, United States Code.

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(d) ‘‘Regulatory offense’’ means any violation of a regulation promulgated by an agency. Sec. 4. Promoting Regulatory Transparency. (a) All notices of proposed rulemaking (NPRMs) and final rules published in the Federal Register after issuance of this order should include a statement that describes whether individuals who violate any of the prohibitions—or fail to comply with any requirements—imposed by the regulation or rule may be subject to criminal penalties. Agencies should draft this statement in consultation with the Department of Justice. For purposes of this order, a regulation is treated as subjecting individuals to criminal penalties when violation of the regula- tion is itself a basis for criminal liability under Federal law. (b) The regulatory text of all NPRMs and final rules with criminal con- sequences published in the Federal Register after issuance of this order should, consistent with applicable law, explicitly state a mens rea require- ment for each such provision or identify the provision as a strict liability offense, accompanied by citations to the relevant provisions of the authorizing statute. (c) Prior to publishing in the Federal Register an NPRM or final rule that contains a regulatory offense not specifically articulated in the author- izing statute that may subject a violator to potential criminal liability with no mens rea requirement or a regulatory offense that includes an element that does not require proof of mens rea (excluding jurisdictional and venue elements), the applicable agency should submit a brief justification for use of a strict liability standard as well as the source of legal authority for the imposition of such a standard, to the Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget (Administrator). In response to these agency submissions, the Administrator shall provide implementation guidance to agencies on this order, monitor agency regulatory actions pursuant to this order, and advise agencies if their actions are inconsistent with the principles set forth in this order and or otherwise conflict with the policies or actions of another agency. After such consultation, a statement of justification should be published in the Federal Register with the NPRM and the final rule. Sec. 5. Agency Referrals for Potential Criminal Enforcement. (a) Within 45 days of the date of this order, and in consultation with the Department of Justice, each agency should publish guidance in the Federal Register describing its plan to administratively address regulatory offenses subject to potential criminal liability rather than refer those offenses to the Depart- ment of Justice for criminal enforcement. Such guidance should make clear that when agencies are enforcing regulations related to statutory criminal violations subject to strict liability, and deciding whether to refer the matter to the Department of Justice, agencies should consider factors such as: (i) the harm or risk of harm, pecuniary or otherwise, caused by the alleged offense; (ii) the potential gain to the putative defendant that could result from the offense; (iii) whether the putative defendant held specialized knowledge, expertise, or was licensed in an industry related to the rule or regulation at issue; and (iv) evidence, if any is available, of the putative defendant’s knowledge or lack thereof of the regulation at issue. (b) Notwithstanding these considerations, the guidance should not deter, limit, or delay agency referrals to the Department of Justice where either the putative defendant’s state of mind is unknown because further investiga- tion is required, or there exists a reasonable indication that a crime has been committed based on the evidence available. (c) When required by internal agency policies or practice, an agency may refer alleged regulatory offenses carrying potential criminal con- sequences to its designated investigation and law enforcement offices for

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investigation of the viability of the charge, subject to the guidance described in 5(a) of this order governing referral of regulatory offenses subject to strict liability. Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) Notwithstanding any other provision in this order, nothing in this order shall apply: (i) to any action that pertains to foreign or military affairs, or to a national security or homeland security function of the United States (other than procurement actions and actions involving the import or export of non- defense articles and services); (ii) to any action that the Department of Justice takes related to a criminal investigation or prosecution, including undercover operations, or any civil enforcement action or related investigation by the Department of Justice, in addition to any action related to a civil investigative demand under 18 U.S.C. 1968; (iii) to any action related to counterfeit goods, pirated goods, or other goods that infringe intellectual property rights, or goods that are adulterated or misbranded, or goods for which regulatory approval was required prior to distribution but not obtained; (iv) to strict liability misdemeanor prosecutions concluded via plea agree- ment; (v) to any investigation of misconduct by an agency employee or any disciplinary, corrective, or employment action taken against an agency employee; or (vi) in any other circumstance or proceeding to which application of this order, or any part of this order, would, in the judgment of the head of the agency, undermine the national security.

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(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, January 18, 2021.

[FR Doc. 2021–01645 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Executive Order 13981 of January 18, 2021 Protecting the United States From Certain Unmanned Air- craft Systems

By the authority vested in me as President by the Constitution and the laws of the United States of America, I, DONALD J. TRUMP, President of the United States of America, find that additional actions are necessary to ensure the security of Unmanned Aircraft Systems (UAS) owned, operated, and controlled by the Federal Government; to secure the integrity of American infrastructure, including America’s National Airspace System (NAS); to protect our law enforcement and warfighters; and to maintain and expand our domestic industrial base capabilities. Accordingly, I hereby order: Section 1. Policy. UAS have tremendous potential to support public safety and national security missions and are increasingly being used by Federal, State, and local governments. UAS are used, for example, to assist law enforcement and support natural disaster relief efforts. Reliance on UAS and components manufactured by our adversaries, however, threatens our national and economic security. United States Government operations involving UAS require accessing, col- lecting, and maintaining data, which could reveal sensitive information. The use of UAS and critical components manufactured and developed by foreign adversaries, or by persons under their control, may allow this sen- sitive information to be accessed by or transferred to foreign adversaries. Furthermore, the manufacturing of UAS involves combining several critical components, including advanced manufacturing techniques, artificial intel- ligence, microelectronic components, and multi-spectral sensors. The Na- tion’s capability to produce UAS and certain critical UAS components domes- tically is critical for national defense and the security and strength of our defense industrial base. It is the policy of the United States, therefore, to prevent the use of taxpayer dollars to procure UAS that present unacceptable risks and are manufactured by, or contain software or critical electronic components from, foreign adver- saries, and to encourage the use of domestically produced UAS. Sec. 2. Reviewing Federal Government Authority to Limit Government Pro- curement of Covered UAS. (a) The heads of all executive departments and agencies (agencies) shall review their respective authorities to determine whether, and to what extent consistent with applicable law, they could cease: (i) directly procuring or indirectly procuring through a third party, such as a contractor, a covered UAS; (ii) providing Federal financial assistance (e.g., through award of a grant) that may be used to procure a covered UAS; (iii) entering into, or renewing, a contract, order, or other commitment for the procurement of a covered UAS; or (iv) otherwise providing Federal funding for the procurement of a covered UAS. (b) After conducting the review described in subsection (a) of this section, the heads of all agencies shall each submit a report to the Director of

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the Office of Management and Budget identifying any authority to take the actions outlined in subsections (a)(i) through (iv) of this section. Sec. 3. Reviewing Federal Government Use of UAS. (a) Within 60 days of the date of this order, the heads of all agencies shall each submit a report to the Director of National Intelligence and the Director of the Office of Science and Technology Policy describing the manufacturer, model, and any relevant security protocols for all UAS currently owned or operated by their respective agency, or controlled by their agency through a third party, such as a contractor, that are manufactured by foreign adversaries or have significant components that are manufactured by foreign adversaries. (b) Within 180 days of the date of this order, the Director of National Intelligence, in consultation with the Secretary of Defense, the Attorney General, the Secretary of Homeland Security, the Director of the Office of Science and Technology Policy, and the heads of other agencies, as appropriate, shall review the reports required by subsection (a) of this section and submit a report to the President assessing the security risks posed by the existing Federal UAS fleet and outlining potential steps that could be taken to mitigate these risks, including, if warranted, discontinuing all Federal use of covered UAS and the expeditious removal of UAS from Federal service. Sec. 4. Restricting Use of UAS On or Over Critical Infrastructure or Other Sensitive Sites. Within 270 days of the date of this order, the Administrator of the Federal Aviation Administration (FAA) shall propose regulations pur- suant to section 2209 of the FAA Extension, Safety, and Security Act of 2016 (Public Law 114–190). Sec. 5. Budget. (a) The heads of all agencies shall consider the replacement of covered UAS to be a priority when developing budget proposals and planning for the use of funds. (b) The Director of the Office of Management and Budget shall work with the heads of all agencies to identify possible sources of funding to replace covered UAS in the Federal fleet in future submissions of the Presi- dent’s Budget request. Sec. 6. Definitions. For purposes of this order, the following definitions shall apply: (a) The term ‘‘adversary country’’ means the Democratic People’s Republic of Korea, the Islamic Republic of Iran, the People’s Republic of China, the Russian Federation, or, as determined by the Secretary of Commerce, any other foreign nation, foreign area, or foreign non-government entity engaging in long-term patterns or serious instances of conduct significantly adverse to the national or economic security of the United States. (b) The term ‘‘covered UAS’’ means any UAS that: (i) is manufactured, in whole or in part, by an entity domiciled in an adversary country; (ii) uses critical electronic components installed in flight controllers, ground control system processors, radios, digital transmission devices, cameras, or gimbals manufactured, in whole or in part, in an adversary country; (iii) uses operating software (including cell phone or tablet applications, but not cell phone or tablet operating systems) developed, in whole or in part, by an entity domiciled in an adversary country; (iv) uses network connectivity or data storage located outside the United States, or administered by any entity domiciled in an adversary country; or (v) contains hardware and software components used for transmitting pho- tographs, videos, location information, flight paths, or any other data collected by the UAS manufactured by an entity domiciled in an adversary country. (c) The term ‘‘critical electronic component’’ means any electronic device that stores, manipulates, or transfers digital data. The term critical electronic

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component does not include, for example, passive electronics such as resis- tors, and non-data transmitting motors, batteries, and wiring. (d) The term ‘‘entity’’ means a partnership, association, trust, joint venture, corporation, government, group, subgroup, other organization, or person. (e) The term ‘‘Intelligence Community’’ has the same meaning set forth for that term in section 3003(4) of title 50, United States Code. (f) The term ‘‘National Airspace System’’ (NAS) means the common net- work of United States airspace; air navigation facilities, equipment, and services; airports or landing areas; aeronautical charts, information, and serv- ices; related rules, regulations, and procedures; technical information; and manpower and material. The term also includes system components shared jointly by the Departments of Defense, Transportation, and Homeland Secu- rity. (g) The term ‘‘Unmanned Aircraft Systems’’ (UAS) means any unmanned aircraft, and the associated elements that are required for the pilot or system operator to operate safely and efficiently in the NAS, including communica- tion links, the components that control the unmanned aircraft, and all critical electronic components. The term UAS does not include any separate commu- nication device, such as a cellular phone or tablet, designed to perform independently of a UAS system, which may be incorporated into the oper- ation of a UAS. Sec. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, January 18, 2021.

[FR Doc. 2021–01646 Filed 1–21–21; 11:15 am] Billing code 3295–F1–P

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Reader Aids Federal Register Vol. 86, No. 13 Friday, January 22, 2021

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JANUARY

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 8 CFR Presidential Documents 2 CFR Executive orders and proclamations 741–6000 5900...... 1253 214...... 1676 1235...... 1737 The United States Government Manual 741–6000 3 CFR 10 CFR Other Services Proclamations: Electronic and on-line services (voice) 741–6020 9694 (Amended by 2...... 3744, 3745 Privacy Act Compilation 741–6050 Proc. 10133) ...... 6541 13...... 3745 9993 (Terminated by 72...... 2527 Proc. 10138) ...... 6799 207...... 2953 ELECTRONIC RESEARCH 9996 (Terminated by 218...... 2953 429...... 2953 World Wide Web Proc. 10138) ...... 6799 10041 (Terminated by 430 ...... 1253, 4776, 4883 Full text of the daily Federal Register, CFR and other publications Proc. 10138) ...... 6799 431 ...... 4, 2953, 3747, 4776, is located at: www.govinfo.gov. 10129...... 215 4885 490...... 2953 Federal Register information and research tools, including Public 10130...... 413 10131...... 417 501...... 2953 Inspection List and electronic text are located at: 590...... 2243 www.federalregister.gov. 10132...... 2951 10133...... 6541 601...... 2953 E-mail 10134...... 6553 609...... 3747 10135...... 6555 611...... 3747 FEDREGTOC (Daily Federal Register Table of Contents Electronic 10136...... 6795 820...... 2953 Mailing List) is an open e-mail service that provides subscribers 10137...... 6797 824...... 2953 with a digital form of the Federal Register Table of Contents. The 10138...... 6799 851...... 2953 digital form of the Federal Register Table of Contents includes 1013...... 2953 HTML and PDF links to the full text of each document. Executive Orders: 13934 (amended by 1017...... 2953 To join or leave, go to https://public.govdelivery.com/accounts/ 13978) ...... 6809 1050...... 2953 USGPOOFR/subscriber/new, enter your email address, then 13969...... 219 1061...... 451 follow the instructions to join, leave, or manage your 13970...... 421 Proposed Rules: subscription. 13971...... 1249 50...... 1022 PENS (Public Law Electronic Notification Service) is an e-mail 13972...... 3727 430...... 4776 service that notifies subscribers of recently enacted laws. 13973...... 3733 431...... 3747, 4776 13974...... 4875 600...... 3747 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 13975...... 6547 and select Join or leave the list (or change settings); then follow 11 CFR 13976...... 6549 the instructions. 13977...... 6803 111...... 1737 FEDREGTOC and PENS are mailing lists only. We cannot 13978...... 6809 respond to specific inquiries. 13979...... 6813 12 CFR Reference questions. Send questions and comments about the 13980...... 6817 3...... 708 Federal Register system to: [email protected] 13981...... 6821 5...... 1254 217...... 708, 3723 The Federal Register staff cannot interpret specific documents or Administrative Orders: Presidential Permits: 252...... 708 regulations. Permit of December 263...... 2527 31, 2020 ...... 435 303...... 6742 FEDERAL REGISTER PAGES AND DATE, JANUARY Notices: 308...... 2246 Notice of January 15, 313...... 1740 1–222...... 4 2021 ...... 6557 324...... 708 223–412...... 5 Memorandums: 337...... 6742 413–932...... 6 Memorandum of 620...... 223 933–1248...... 7 January 8, 2021 ...... 2949 747...... 933 1249–1736...... 8 1002...... 3773 1737–2242...... 11 6 CFR 1006...... 5766 2243–2526...... 12 Proposed Rules: 1083...... 3874 2527–2952...... 13 27...... 495 Proposed Rules: 2953–3732...... 14 21...... 6572 7 CFR 53...... 2299 3733–4874...... 15 9...... 4877 163...... 6572 4875–6242...... 19 760...... 439 204...... 1303 6243–6552...... 21 271...... 358 208...... 6576 6553–6824...... 22 273...... 358 225...... 2299 990...... 5596 304...... 2299 1223...... 2880 353...... 6580 1464...... 3735 701...... 1826, 3876

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748...... 6586 140...... 949, 3236 882...... 2582 22...... 1834 1241...... 1306 150...... 3236 884...... 2582 24...... 1834 1242...... 1326 151...... 3236 886...... 2582 26...... 1834 210...... 748, 2080 902...... 2582 29...... 1834 13 CFR 227...... 3496 982...... 2582 37...... 1834 113...... 3692 229...... 2080, 3496 983...... 2582 38...... 1834 120...... 3692, 3712 230...... 2080, 3496 985...... 2582 96...... 1834 121 ...... 2957, 3692, 3712 239...... 2080, 3496 417...... 1834 25 CFR 124...... 2529, 2957 240 ...... 2080, 3496, 4662 458...... 1834 125...... 2957 249...... 2080, 3496 Proposed Rules: 500...... 1834 126...... 2957 249b...... 4662 15...... 1037 503...... 29 127...... 2957, 2960 270...... 748, 3496 525...... 1834 26 CFR Proposed Rules: 274...... 3496 530...... 1834 109...... 5036 Proposed Rules: 1 .....254, 464, 810, 1256, 2974, 580...... 1834 120...... 5036 230...... 5063 4516, 4728, 4970, 5452, 1978...... 1834 123...... 5036 232...... 5063 5496, 5544, 6196 1979...... 1834 239...... 5063 40...... 4990 1980...... 1834 14 CFR 240...... 2311 49...... 4990 1981...... 1834 1...... 4390 249...... 5063 53...... 6196 1982...... 1834 11...... 4390 Proposed Rules: 1983...... 1834 13...... 1745 18 CFR 1...... 2607, 4728 1984...... 1834 21...... 4314 Proposed Rules: 301...... 2607 1985...... 1834 39 ...... 458, 2961, 3767, 6559 1986...... 1834 35...... 6420 29 CFR 43...... 4314 1987...... 1834 47...... 4390 19 CFR 7...... 1772 1988...... 1834 8...... 1772 48...... 4390 Ch. I...... 4967, 4969 18...... 1, 1800 30 CFR 71 ...... 3780, 3781, 6243, 6244 12...... 2255, 6561 89...... 4390 22...... 1772 100...... 2964 91...... 4390 20 CFR 24...... 1772 1206...... 4612 26...... 1772 97...... 25, 27 501...... 1768 1241...... 4612 29...... 1772 107...... 4314, 4390 641...... 1772 37...... 1772 31 CFR 250...... 2534 655 ...... 1, 1772, 2964, 3608 38...... 1772 254...... 2534 656...... 3608 33...... 6138 96...... 1772 383...... 1745 658...... 1772 585...... 3793 417...... 1772 406...... 1745 667...... 1772 Proposed Rules: 458...... 1772 Proposed Rules: 683...... 1772 1010...... 3897 500...... 1772, 2964 39 ...... 3879, 3883, 3885, 5040, 702...... 2964 1020...... 3897 501...... 2964 6269, 6271, 6273, 6276 725...... 2964 1022...... 3897 503...... 1, 2964 71 ...... 3888, 3889, 3891, 3893, 726...... 1772, 2964 525...... 1772 3894, 3896, 5043, 5044, 802...... 1795 32 CFR 5046, 6279 530...... 1772, 2964 Proposed Rules: 570...... 2964 Proposed Rules: 241...... 5052 501...... 1831 158...... 1063 298...... 5052 578...... 2964 641...... 1834 579...... 2964 310...... 498 15 CFR 655...... 29, 1834 580...... 1772 658...... 1834 33 CFR 6...... 1764 780...... 1168 667...... 1834 117...... 1806 7...... 4909 788...... 1168 683...... 1834 165 ...... 2256, 6247, 6566 710...... 936 795...... 1168 726...... 1834 Ch. II ...... 2744 712...... 936 801...... 2964 802...... 1857 220...... 1278 730...... 4862 825...... 2964 223...... 1808 734...... 4862, 4929 1601...... 2974 21 CFR 236...... 1808 736...... 4862 1626...... 2974 6...... 5694 239...... 1809 738...... 4929 1903...... 2964 101...... 462 240...... 3801 740...... 4929 1978...... 1772 1141...... 3793 263...... 3802 742 ...... 944, 2252, 4929 1979...... 1772 276...... 3802 744 ...... 1766, 4862, 4865 Proposed Rules: 1980...... 1772 279...... 3803 745...... 936 1301...... 1030 1981...... 1772 401...... 1745 748...... 4929 1309...... 1030 1982...... 1772 750...... 4929 1321...... 1030 1983...... 1772 Proposed Rules: 1984...... 1772 96...... 3899 772...... 4929 22 CFR 774 ...... 461, 944, 4929 1985...... 1772 165...... 32 922...... 4937 212...... 250 1986...... 1772 1987...... 1772 34 CFR 16 CFR 24 CFR 1988...... 1772 Ch. II ...... 5009 1...... 2539 3280...... 2496 4001...... 1256 600...... 5008 1223...... 4961 3282...... 2496 4071...... 2541 602...... 5008 3285...... 2496 4204...... 1256 668...... 5008 17 CFR Proposed Rules: 4206...... 1256 673...... 5008 1...... 3236 5...... 2582 4207...... 1256 674...... 5008 15...... 3236 92...... 2582 4211...... 1256 682...... 5008 17...... 3236 93...... 2582 4219...... 1256 685...... 5008 19...... 3236 200...... 2582 4302...... 2541 Proposed Rules: 23...... 223, 229 574...... 2582 Proposed Rules: 300...... 2615 38...... 2048 576...... 2582 7...... 1834 39...... 949 578...... 2582 8...... 1834 36 CFR 40...... 3236 880...... 2582 18...... 29, 1862 7...... 3804

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Proposed Rules: 422...... 5864 2...... 2337 220...... 1745 7...... 3903 424...... 5020 54...... 6611 221...... 1745 425...... 5020 64...... 2636 37 CFR 222...... 1745 455...... 5020 74...... 1909 223...... 1745 1...... 2542, 3815 460...... 5864 95...... 2337 224...... 1745 42...... 2542, 3815 1000...... 5694 48 CFR 225...... 1745 210...... 2176 Proposed Rules: 227...... 1745 390...... 6568 430...... 5105 Ch. I ....3676, 3689, 6180, 6194 228...... 1745 Proposed Rules: 433...... 5105 2...... 3687 229...... 1745 401...... 35 447...... 5105 9...... 3677 230...... 1745 404...... 35 455...... 5105 12...... 3679, 6180 231...... 1745 457...... 5105 13...... 3679 232...... 1745 39 CFR 15...... 3679, 3687 43 CFR 233...... 2486 16...... 3679 233...... 1745 234...... 1745 Proposed Rules: Proposed Rules: 17...... 3679, 3687 111...... 1080 30...... 1037 19...... 3682 235...... 1745 236...... 1745 44 CFR 25...... 6180 40 CFR 28...... 3682 237...... 1745 30...... 469 64...... 2558 32...... 3682 238...... 1745 52 ...... 971, 3816, 3818, 3820 333...... 1288 37...... 3679, 3687 239...... 1745 240...... 1745 60...... 2542, 5013 45 CFR 52 ...... 3677, 3682, 3687, 6180 80...... 3827 53...... 3682 241...... 1745 87...... 2136 1...... 3010 204...... 3832 242...... 1745 141...... 4198 8...... 5694 212...... 3832, 3835 243...... 1745 142...... 4198 75...... 2257 213...... 3832 244...... 1745 155...... 6138 174...... 3827 225...... 3836 272...... 1745 156...... 6138 282...... 977 239...... 3836 386...... 1745 200...... 5694 745...... 983 245...... 3837 300...... 5694 571...... 1292 751 ...... 866, 880, 894, 911, 922 252 ...... 3832, 3835, 3836, 3837 403...... 5694 578...... 1745, 3016 Ch. IX...... 1281 1010...... 5694 Ch. VII...... 493 831...... 1809 1030...... 2136 1390...... 5694 Proposed Rules: 1022...... 3026 1519...... 1279 Proposed Rules: 212...... 3935 Proposed Rules: Proposed Rules: 5b...... 2633 225...... 3935 191...... 3938 Ch. I ...... 6602 46...... 2615 252...... 3835 192...... 3938, 3956 52 ...... 1347, 2318, 2615, 5086, 75...... 2615 852...... 6281 195...... 3938, 3956 5088, 5091, 6589, 6591 160...... 6446 873...... 6281 219...... 1418 63 ...... 1362, 1390, 1868, 3054, 164...... 6446 49 CFR 232...... 3957 3079, 3906, 5093 391...... 2344 80...... 3928, 5094 46 CFR 106...... 2564 571...... 47 180...... 2615 67...... 5022 107...... 1745, 2564 280...... 5094 221...... 1745 171...... 1745, 2564 281...... 1081, 5094 307...... 1745 172...... 2564 50 CFR 282...... 1081 340...... 1745 173...... 2564 10...... 1134 700...... 1890 356...... 1745 174...... 2564 17 ...... 192, 2564, 4820 751...... 3932 506...... 2560 175...... 2564 217...... 5322 Proposed Rules: 176...... 2564 219...... 3840 41 CFR 177...... 2564 71...... 3897 229...... 3028 60–30...... 1772 178...... 2564 115...... 3897 300...... 5033 179...... 2564 Proposed Rules: 176...... 3897 648...... 1810 60–30...... 1834 530...... 5106 180...... 2564 190...... 1745 665...... 2297 42 CFR 47 CFR 191...... 2210, 3839 679 ...... 1300, 1301, 1302, 6571 1...... 5694 0...... 44 192...... 2210, 3839 Proposed Rules: 100...... 6249 1...... 2904, 3830 209...... 1745 17...... 3976, 5112 400...... 5020 15...... 2278 213...... 1745 29...... 5120 404...... 5694 51...... 1636 214...... 1745 217...... 1588 405...... 2987, 5020 54...... 994, 2904 215...... 1745 218...... 2636 410...... 5020 64...... 44, 2562 216...... 1745 223 ...... 1433, 1452, 2372 414...... 5020 73...... 2296, 3015 217...... 1745 226...... 1433, 1452 415...... 5020 Proposed Rules: 218...... 1745 300...... 279 417...... 5864 1...... 6611 219...... 1745 402...... 2373

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